Delta May Spark Merger Mania
#1
Gets Weekends Off
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Delta May Spark Merger Mania
#2
Can't abide NAI
Joined APC: Jun 2007
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Is it just me, or are others out there tired of statements like:
Being spun into:
The reality is that United's management is trying to act on the consultants' suggestion to "unlock shareholder value" and sell off parts of the operation. The joke amongst management is that United just showed up on E-Bay.
Just like when your neighbor sells his house, you are going to find out how much he wants for it, look it over, and maybe come out with a lightly used lawnmower or weed eater. You might not be in the market for another house, but when there are offers and transactions going on around you, you are going to look and evaluate your position.
If United spins off a part, every airline is going to have to evaluate how that effects them and how the competitive marketplace is changing. Aside from a couple of secondary hubs, there is not much overlap which would provide an opportunity to reduce capacity without a competitive airline coming in and instantly filling the void. The low cost carriers have airplanes coming that they need to find markets for.
I do not think Delta is wanting to kick off merger mania. The hedge fund and investors eager for a quick buck are pushing this.... In response Delta has to admit that it is going to look at any potential deal. But that is a big difference than saying Delta is a "Player." Hopefully, Delta is managed by responsible adults who take a long term view.
Jiffy - I don't think Delta is shopping. But keep the news coming ....
"We do believe the right transaction, certainly for Delta, would add tremendous value," Ed Bastian, the carrier's president, declared last week, as he discussed mergers at a Wall Street investor conference. "We're looking at the question [in] real time. It's a front burner issue for us."
Airline industry consolidation has moved a step closer to reality, now that Delta has made clear that it wants to be a player.
Just like when your neighbor sells his house, you are going to find out how much he wants for it, look it over, and maybe come out with a lightly used lawnmower or weed eater. You might not be in the market for another house, but when there are offers and transactions going on around you, you are going to look and evaluate your position.
If United spins off a part, every airline is going to have to evaluate how that effects them and how the competitive marketplace is changing. Aside from a couple of secondary hubs, there is not much overlap which would provide an opportunity to reduce capacity without a competitive airline coming in and instantly filling the void. The low cost carriers have airplanes coming that they need to find markets for.
I do not think Delta is wanting to kick off merger mania. The hedge fund and investors eager for a quick buck are pushing this.... In response Delta has to admit that it is going to look at any potential deal. But that is a big difference than saying Delta is a "Player." Hopefully, Delta is managed by responsible adults who take a long term view.
Jiffy - I don't think Delta is shopping. But keep the news coming ....
Last edited by Bucking Bar; 11-13-2007 at 12:54 PM.
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