DAL and NWA (not even trying to hide it anymore)
11-07-2007, 09:27 PM
#1
Gets Weekends Off
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Joined APC: Feb 2007
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DAL and NWA (not even trying to hide it anymore)
Delta To Sign Deal With Engine-Parts Supplier
November 7, 2007 Delta Air Lines is expected to announce a 10 year USD$1 billion contract with a major supplier of jet-engine parts that will help the airline broaden the types of aircraft engines it can maintain.
According to the Wall Street Journal, Chromalloy Gas Turbine will expand the ability of Delta's in-house maintenance unit to service two engine types, including one commonly used on Airbus planes -- a type of aircraft Delta does not fly or repair.
The deal is expected to be disclosed at an aviation industry conference in Milan, the newspaper said.
Delta, like many other US network carriers, is shifting capacity to lucrative international routes and away from the hard-fought domestic market.
(Reuters)
November 7, 2007 Delta Air Lines is expected to announce a 10 year USD$1 billion contract with a major supplier of jet-engine parts that will help the airline broaden the types of aircraft engines it can maintain.
According to the Wall Street Journal, Chromalloy Gas Turbine will expand the ability of Delta's in-house maintenance unit to service two engine types, including one commonly used on Airbus planes -- a type of aircraft Delta does not fly or repair.
The deal is expected to be disclosed at an aviation industry conference in Milan, the newspaper said.
Delta, like many other US network carriers, is shifting capacity to lucrative international routes and away from the hard-fought domestic market.
(Reuters)
Last edited by newKnow; 11-07-2007 at 10:03 PM.
11-08-2007, 04:26 AM
#3
Sit reserve to get lucky
Joined APC: Mar 2005
Position: is down range clear?
Posts: 155
that is some crazy speculation in the sense that something might definitely happen. knowing when and who would definitely be the key. it's going to be an interesting 2008 especially with what happened to the stock market yesterday, the US dollar and the price of oil at just above $98 /barrel.
11-08-2007, 04:33 AM
#4
Gets Weekends Off
Joined APC: Jul 2007
Position: E190
Posts: 103
I believe if it would be UAL it would only be a piece of UAL and not the entire company. UAL and DAL would be too massive a merger. I am thinking that if the government would not let US and UAL then DAL would not be likely. NWA and DAL seems to be to big too. I would hate to think that some airline is going to get fed to the dogs for a merger.
DOJ source: http://www.washingtonpost.com/wp-dyn...air/index.html
Has there ever been a functioning airline bought out by a group of airlines?
DOJ source: http://www.washingtonpost.com/wp-dyn...air/index.html
Has there ever been a functioning airline bought out by a group of airlines?
11-08-2007, 06:01 AM
#5
Can't abide NAI
Joined APC: Jun 2007
Position: Douglas Aerospace post production Flight Test & Work Around Engineering bulletin dissembler
Posts: 11,989
Pilot SS:
Pan Am was sold to American, United and Delta. When Delta pulled the plug, much of Pan Am's remaining South American routes were flown by American out of Miami. The Pacific was bought by United and Delta bought the north Atlantic.
Out of these transactions the best deal was American's which "took" by market competition in the south what Delta paid dearly to acquire across the North Atlantic. Some writers link Delta's bankruptcy to pressures that begain due to the expense of the Pan Am deal. The way they see it Delta's expense forced Ron Allen's destruction of the traditional Delta way of doing business, which lead to an inexperienced outsider with a banking background flying the airline into the dirt with some less than ethical henchmen. The story might be accurate, or only partly true. I don't know.
United is a good operation with good people. It has suffered from some of the worst management I've ever seen in operation and is typical of a business which has ceeded their job functions to McKinsey's consultants. There is some value in United's Pacific operations, but nothing that could not be duplicated on the cheap by buying 787's, or used 777's and just overflying hubs. The 5th freedom rights from NRT are worth something, but the value of 5th freedom rights will decline with the 787 doing to 747's and A340's what RJ's did to DC-9's and 727's. Smaller, point to point, abilities will allow the economic overflight of hubs.
There is also the question of Pan Asian competition with outfits like Cebu Pacific which pay less than SkyBus rates to Fillipinos who are eager to take a 1 in 2,500 chance at an ab initio pilot program.
Pan Am was sold to American, United and Delta. When Delta pulled the plug, much of Pan Am's remaining South American routes were flown by American out of Miami. The Pacific was bought by United and Delta bought the north Atlantic.
Out of these transactions the best deal was American's which "took" by market competition in the south what Delta paid dearly to acquire across the North Atlantic. Some writers link Delta's bankruptcy to pressures that begain due to the expense of the Pan Am deal. The way they see it Delta's expense forced Ron Allen's destruction of the traditional Delta way of doing business, which lead to an inexperienced outsider with a banking background flying the airline into the dirt with some less than ethical henchmen. The story might be accurate, or only partly true. I don't know.
United is a good operation with good people. It has suffered from some of the worst management I've ever seen in operation and is typical of a business which has ceeded their job functions to McKinsey's consultants. There is some value in United's Pacific operations, but nothing that could not be duplicated on the cheap by buying 787's, or used 777's and just overflying hubs. The 5th freedom rights from NRT are worth something, but the value of 5th freedom rights will decline with the 787 doing to 747's and A340's what RJ's did to DC-9's and 727's. Smaller, point to point, abilities will allow the economic overflight of hubs.
There is also the question of Pan Asian competition with outfits like Cebu Pacific which pay less than SkyBus rates to Fillipinos who are eager to take a 1 in 2,500 chance at an ab initio pilot program.
Last edited by Bucking Bar; 11-08-2007 at 06:13 AM.
11-08-2007, 06:15 AM
#6
Gets Weekends Off
Joined APC: Sep 2005
Position: A320
Posts: 406
My bet is the merger mania will start with LCC's first. Big LCC buying smaller ones and Legacy buying smaller LCC's. Once those mergers are completed and skybus and virgin are put out of business the "new" legacy's will merge among themselves.
whether it will be SWA buying Airtran, AA Alaska, DAL or UAL buying JB, NWA buying Frontier or Spirit or any combination in between is anyone guess.
the "legacy" carriers will not merger until the bigger LCC's have been absorbed and use to take out the new entrants. they will ink deals like the one between KLM-Airfrance with DAL and NWA, which is more than code share and has antitrust immunity but stops short of merging. Once they can "prove" to the government that the removal of the LCC's and the new alliances are not bad for the american public ( more expensive tickets) then they will be allow to merge.
My time line is 12months for setting up those alliances with antitrust immunity,18 months for the buyout of LCC's, 48 months for the legacy mergers, 72 months for us all to get really fat contracts.
whether it will be SWA buying Airtran, AA Alaska, DAL or UAL buying JB, NWA buying Frontier or Spirit or any combination in between is anyone guess.
the "legacy" carriers will not merger until the bigger LCC's have been absorbed and use to take out the new entrants. they will ink deals like the one between KLM-Airfrance with DAL and NWA, which is more than code share and has antitrust immunity but stops short of merging. Once they can "prove" to the government that the removal of the LCC's and the new alliances are not bad for the american public ( more expensive tickets) then they will be allow to merge.
My time line is 12months for setting up those alliances with antitrust immunity,18 months for the buyout of LCC's, 48 months for the legacy mergers, 72 months for us all to get really fat contracts.
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