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Delta, Northwest Agree to $17.7 Billion Merger

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Newsjock Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 07:42 PM
Original message
Delta, Northwest Agree to $17.7 Billion Merger
Source: CNBC

Delta Air Lines and Northwest Airlines confirmed late Monday that both carriers have agreed to an all-stock merger with a combined enterprise value of $17.7 billion. This creates the largest passenger carrier in the United States.

The merged airline will be called Delta. Employees will be given an equity stake in the new company.

The transaction is expected to generate more than $1 billion in annual revenue and cost synergies and the company expects to incur one-time cash costs to not exceed $1 billion to integrate the two airlines. Some job reductions and company-paid transfers are expected.

Read more: http://www.cnbc.com/id/24116243
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KeepItReal Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 07:44 PM
Response to Original message
1. Continental and United are next....
wow.
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MichiganVote Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 07:44 PM
Response to Original message
2. Just can't beat that competitive free market business model
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Oerdin Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:30 PM
Response to Reply #2
18. Sadly true.
The air line business is one industry which has actually lost more money then it made since deregulation. Year after year, decade after decade, the air lines lose money and Washington bails them out.
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MercutioATC Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 07:46 PM
Response to Original message
3. Too bad the deal doesn't get rid of Northwest's DC-9s.
Those dinosaurs are a pain in the ass.
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The Velveteen Ocelot Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 07:49 PM
Response to Reply #3
4. Hey!!!
Just because they aren't flying right in the *middle* of the airway...! It's a good ol' airplane.
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MercutioATC Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 07:53 PM
Response to Reply #4
5. ...and won't outclimb a Beech 1900...and don't have RNAV, so you can't send them direct...
Edited on Mon Apr-14-08 07:54 PM by MercutioATC
The way Continental Express flies its Embraer jets is criminal, but DC-9s are a constant thorn in my paw...
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The Velveteen Ocelot Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 07:58 PM
Response to Reply #5
6. They wish they could go direct.
Edited on Mon Apr-14-08 07:58 PM by ocelot
Trust me on that.

I think it's the only airplane out there that files as a /W. Still, it's a tough old bird, the Everready Bunny of aviation. After nuclear war nothing will be left but cockroaches, Keith Richards and DC-9s.
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MercutioATC Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:02 PM
Response to Reply #6
8. I know. It's just too expensive to upgrade them. Luckily, we're both vector-equipped.
I just wish Northwest didn't own so damn many of them.


..."cockroaches, Keith Richards and DC9s"....I'm going to use that one at work tomorrow :)
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av8rdave Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:09 PM
Response to Reply #5
9. They can go direct...they're radar vector equipped
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MercutioATC Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:11 PM
Response to Reply #9
10. True, but try that with an 80-knot quartering wind
I'm always out to help them shorten their trip, but winds play havoc on directs :)
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av8rdave Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:22 PM
Response to Reply #10
16. without a wind readout, it would be tough
we used to do it in the 727 with forecast winds....amazingly accurate.

It would help to "suggest" a correction to ATC
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MercutioATC Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:31 PM
Response to Reply #16
19. We try to build that in, but winds can easily change 30 degrees in 20 miles...
It's not really a problem unless I'm busy.
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av8rdave Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:32 PM
Response to Reply #19
20. understand....
it's easy to get spoiled with FMS and that nice little track line
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MercutioATC Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:35 PM
Response to Reply #20
21. ...and we've gotten spoiled because you have it...
I've been doing this for 17 years...I remember when a lot of planes needed vectors. We've just become accustomed to you not needing them any more (especially since domestic RVSM)
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av8rdave Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:48 PM
Original message
Oh, I know....
Between the AF and the airline, I've been at it almost 30....looking back, it suddenly occurs to me how much really has changed.
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MercutioATC Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:52 PM
Response to Original message
25. Yes, a lot..even just in my experience.
I won't presume to speak from the airline's side, but the FAA goal now seems to be "faster and cheaper" rather than "safer and smarter".
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The Velveteen Ocelot Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:48 PM
Response to Reply #21
22. Gimme a vector, Victor.
I need a clearance, Clarence.
Roger, Roger.

OK, I'll stop now. (But I have to ask: Do you like movies about gladiators?)
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MercutioATC Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:50 PM
Response to Reply #22
23. Have you ever seen a grown man naked?
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The Velveteen Ocelot Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:51 PM
Response to Reply #23
24. Ever been in a Turkish prison?
I can't help it... :rofl:
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MercutioATC Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:53 PM
Response to Reply #24
26. It looks like I chose the wrong week to stop sniffing glue...
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DemoTex Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:16 PM
Response to Reply #3
12. DC-9-10s. Old Southern Airways aircraft. Antiques, indeed.
"Hard" wing (no leading-edge devices).
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The Velveteen Ocelot Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:18 PM
Response to Reply #12
14. Those things are gone. Not sure who flies those any more.
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whistle Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 07:58 PM
Response to Original message
7. Will this help the airlines to be more competitive, or just screw employees
...and travelers? This really sounds and smells like grounds for anti-trust against both corporations and their creditors
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dflprincess Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:15 PM
Response to Reply #7
11. It's generally not thought to be good news for Minnesota
NWA owes the state some money and, more importantly, I've heard from the local media that it's expected to cost a lot of jobs. Though there are others on this board whose opinion I would defer to as to how good or bad it will be for employees.

As an infrequent flier, I just hope MSP doesn't lose it's status as a hub airport. It might cost more to fly out of here, but it's easer to get a direct and nonstop flights out of a hub.
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The Velveteen Ocelot Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:21 PM
Response to Reply #11
15. The "word" is that the MSP hub will remain a hub.
Probably not many job losses, either. The intent, at least, is to make one really big airline out of two pretty big ones, and not shrink either one substantially. I hope.
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dflprincess Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:25 PM
Response to Reply #15
17. I'm glad about the hub
but even happier about the jobs.
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CatholicEdHead Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-15-08 06:47 PM
Response to Reply #15
32. It will be a hub for a few years but MSP will no be a hub within a decade
If the current Delta/ex-Northwest CEO has anything to say about it. I also think Memphis is eventually gone. Detroit will stay for an overseas hub both east and west. Delta will keep Amsterdam and Tokyo.
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FarCenter Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-15-08 08:05 PM
Response to Reply #32
34. Cincinnati
Wouldn't they keep Memphis and close the Cincinatti hub?

That would give them hubs in Detroit, Memphis and Atlanta.
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The Velveteen Ocelot Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-15-08 08:05 PM
Response to Reply #32
35. I think you're wrong about that.
MSP is the 10th busiest airport in the world, based on takeoffs and landings. http://feelingminnesotan.blogspot.com/2007/06/minneapolis-st-paul-is-worlds-10th.html It has also won several awards for passenger convenience. No way would Delta give up MSP as a hub unless things change very drastically.
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The Velveteen Ocelot Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 08:17 PM
Response to Reply #7
13. We'll see. Here's the official corporate line:
http://www.newglobalairline.com/
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Haole Girl Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Apr-14-08 10:28 PM
Response to Original message
27. Well, I guess it's official. nt
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SydneyBristow Donating Member (143 posts) Send PM | Profile | Ignore Tue Apr-15-08 03:30 AM
Response to Original message
28. It's not good for employees...
No matter which CEO or senator tells you, there is nothing good about pitting one group of employees against another. It creates animosity which spills over into customer service. NWA is know as having crappy customer service, and the management has been screwing with the company for 30 years. Coincidence? I think not...
When the executives line their pockets, and the employees take a 50% pay cut, and pray that the government bails out their retirement...well...I'll stop there....

http://www.usatoday.com/travel/flights/2007-05-07-nwa-ceo-pay_N.htm
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Puglover Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-15-08 08:59 AM
Response to Original message
29. 30 year NWA employee here.
Edited on Tue Apr-15-08 09:06 AM by Puglover
And I simply don't know what to think. I have 8 years before retirement and my job is such that sooner or later it will move to ATL. And (no offense to any folks from Atlanta) I wouldn't think of relocating down there. I still have alot of seniority at the airport so I can always go back there and finish up my illustrious career working the gates I guess.

Problem is that Delta is non union and we are union and there will be a vote. I hope hope hope that Delta employees aren't naive enough to think that we can do without a union in this industry.
They already have this up:


http://www.newglobalairline.com/
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The Velveteen Ocelot Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-15-08 04:59 PM
Response to Reply #29
30. Here's hoping things don't change too much.
I think I'm safe, for now. I'm with you, though -- I'd rather drink bleach than move to ATL.
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peacebuzzard Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-15-08 05:48 PM
Response to Reply #29
31. Ten year nwa f/a here
and now the next date for our labor group anyway, will be the union vote at Delta for the f/as on the 23rd.

That will determine whether I stay or early out. I hope the f/as do the right thing this time and vote the afa in.
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The Velveteen Ocelot Donating Member (1000+ posts) Send PM | Profile | Ignore Tue Apr-15-08 08:00 PM
Response to Reply #31
33. Good luck! You guys rock.
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