O.K. now I know who ya are. See ya in class!

 

What is a hedge fund company who owns 7 million Delta shares and 5.6 million United Shares doing ?

They sent a letter to the Delta Board saying "Look at mergers." Delta didn't originate the speculation; the hedge fund did.

Do you think the hedge fund company is enjoying Delta's stock going up with the speculation?

I would look for a United Delta merge

PS This is a Nov, 2007 article. Is is still valid ?



"When Anderson was named in August as Delta CEO to replace Grinstein, there was immediate speculation in the investment community that Delta and Northwest might eventually merge. Anderson is a former CEO of Northwest Airlines Corp.

Anderson immediately tried to dispel such speculation, telling Delta employees he wasn't coming to Delta to facilitate a deal with Eagan, Minn.-based Northwest.

Delta's initial statement Wednesday about the establishment of a board committee followed the release of a letter by a hedge fund that owns 7 million Delta shares that called on the airline to consider combining with UAL.

Pardus Capital Management LP said in the letter to Delta's top management that it is "imperative" that the company undertake a merger transaction with another airline in view of soaring fuel prices and what it described as the increased risks of going it alone.
"Consolidation is needed to de-risk the industry and time is of the essence as now is the right regulatory environment," said Karim Samii, president of Pardus, and Shane Larson, a principal.

The hedge fund executives said they had determined since making a similar recommendation in a Sept. 7 letter that "the most attractive and practical combination would be a Delta and United Airlines combination."

It cited figures from a consulting firm estimating that the benefits of such a pairing would be about $585 million and said a combined Delta-United would boast a broader network than any other combination.
Pardus also owned 5.6 million shares of Chicago-based UAL as of Sept. 30.

Pardus executives said a Delta combination with Northwest would produce even bigger benefits of about $1.5 billion, primarily from combining the smallest hubs - Detroit/Cincinnati and Memphis/Atlanta.
"However, Northwest may not enable Delta to complete the breadth of network that business travelers require, resulting in the need for a potential follow-on transaction at a later date in order to achieve the same breadth of network that UAL would provide out of the box."
Pardus, citing information provided by the air transport consultancy Simat, Helliesen & Eichner Inc., said a third potential combination, with Continental Airlines Inc., would produce no synergies and would raise other challenges.

Robert Mann, an airline consultant in Port Washington, N.Y., said United's broad Pacific network and Delta's huge Atlantic presence would complement each other. However, he said, combining fleet information systems and labor could pose challenges. The biggest problem would be that neither carrier has any recent track record of integration, he said. "I would see this as a very risky move from the standpoint of the actual implementation," Mann said.

 

You are correct when stating that 90% of the CPS list can hit the street from a NWA furlough. The CPS CBA actually states that 10% of the CPS list won't hit the streets as long as those CPS pilots bypassed flow. So, in reality, if a NW/DAL merger happens soon and requires a flow back, pretty much the entire CPS list is gone per the CBA. That is because there is no way that all 360 CPS pilots would have had a chance to bypass flow (for one thing we only have 170 pilots and two; you need to be on property for 36+ months before flowing, etc....).

It is my opinion however, that CPS pilots won't be affected from a merger between NW/DAL. In general, I think there are/will be too many retirements at NW and they will aggresively use the EMB175s to grow the domestic market. As another poster mentioned, the future is international flying which does take more crews and the age 65 law requires that one of those airmen be under 60. I'm pretty sure DAL has seen most of its retirements already but they too are hiring aggresively. Together, I think a merged NW/DAL will require no furloughs or slow and steady hiring.

If a deal goes down, I know it won't be all roses (since airline mergers never are), but perhaps if this is done right, NW/DAL can lead the industry by having first movers advantage.

 

[quote=king10pin02;297856]can probably kiss 1/3 to 1/2 the 50 seat flying good bye.

PNCL has 133 crj200s
CMR has 136 crj200s
ASA has 108 crj200s
CHQ has 22 e145s
FRDM has 36 e145s
SKW has 56 crj200s
XJT has 21 erj145s


Actually, CMR is already down to 100 CRJ-200s and, as announced earlier this week, will soon be down to just 86.

It's hard keeping up with all the "growth" at Comair these days.

 

SkyWest has a few more -200's than that (for a combined DAL / UAL merger):


(136) CRJ200 aircraft (56 DLC, 65 UAX, 15 Midwest)
(65) CRJ700 aircraft (13 DLC, 52 UAX)
(17) CRJ900 aircraft (17 DLC)
(59) Embraer 120 turboprops (14 DLC, 45 UAX)

 

I agree with most of the things you say...but come on man...this statement is just so naive!

 

ya, but the title of the threat was a combined DL/NW fleet, thats why i did not include the UAL 200s.

 

If you have any inside NWA information we do not know about share with us, otherwise, keep your negative comments to yourself. My statement about NWA hiring trend is a prediction based on current facts available. You, on the other hand offer no evidence to the contrary.

 

Why is it naive? Because Delta might talk to NWA about possibly merging. There are way to many "what ifs" if thats your reason.

 

What I quoted above my statement had nothing to do with mergers...

Lightningspeed said "air travel is expected to more than double in the next 5 years, so it's not likely hiring by NWA will stop anytime soon"

I think that's a pretty bold prediction considering the number of economists that think we're headed for a recession.

Thats all, don't read into it too much, you'll hurt yourself