Airline Pilot Central Forums - When Delta/NWA merge, which base closes first?

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I personally can't understand why airlines don't place more value on SLC. Its a decent sized city and growing fast, its closer to skiing than any other major airport, its got one of the best on time performance records and deals with snow better than any other airport.

And on top of that the people around SLC are just so friendly. Delta is growing it, but it doesn't seem like it gets the attention it deserves IMHO.

Quote:

Originally Posted by Airsupport (Post 322648)

i can tell you right now pinnacle is getting more routes and doing more flying for nwa every month. we now have a mem-cos route. we are also starting a mem-crw route. memphis is going no where. plenty of room to grow, little to no taxi time, and a very good location.

Things are good in MEM right now. But remember, in a merger all bets are off.

MSP, DTW, CVG -- all are located close together. Something has to give.

ATL, MEM. Same thing. No way Delta maintains both as hubs.

So....

DTW & ATL are locks to stay post-merger.

MSP - even money. Minnesota politicians could hold up the merger unless they get assurances of a hub.

CVG - shaky

MEM - odd man out, too small, few international routes, WAY too close to ATL SuperHub. MEM closes.

Quote:

Originally Posted by jdt30 (Post 322684)

Cal can merge if NWA doesn't merge it just costs more than 100 dollars.

CAL can't merge without NWAs approval. The only way around that is if NWA itself merges. I doubt NWA would want them to merge unless with them.

None. Why close them just to let some LLC come in and snatch up flying when both carriers have full flights? Also there is NO way the DOJ would allow AA to merge with anyone. AA has already done its merging.

Quote:

Originally Posted by naley70b (Post 322686)

The problem with SLC, is that more and more emphasis is being put on international routes and SLC doesn't have the greatest location for that. SLC is good for the ski traffic, relatively short flight to ASE, EGE, and the like. LAX is a better choice to grow for an international presence on the west coast

Quote:

Originally Posted by ToiletDuck (Post 322795)

CAL can't merge without NWAs approval. The only way around that is if NWA itself merges. I doubt NWA would want them to merge unless with them.

We can merge or buy, the problem is we have to pay a large amount of money for that golden share. Cal would be a lot better off if the mergers did not happen and we were allowed to grow on our own at our own pace. The problem is that right now we are not large enough to compete against a combined DAL/NWA.

Quote:

Originally Posted by naley70b (Post 322686)

In airline terms, SLC is the MEM of the west, minus beal street.

I hate to say it, but MEM and DTW are not going to fair well in a merger. MEM is too close to ATL and DTW is a dying economy.

Quote:

Originally Posted by jdt30 (Post 322850)

We can merge or buy, the problem is we have to pay a large amount of money for that golden share. Cal would be a lot better off if the mergers did not happen and we were allowed to grow on our own at our own pace. The problem is that right now we are not large enough to compete against a combined DAL/NWA.

From what I've been reading in the USA Today, New York Times, Financial Week, and Yahoo finance CAL can't merge regardless of how much money it has. The only way CAL can merge is if NWA allows it, or merges itself. Acutally NWA doesn't even have to merge they simply have to start a merger. If the merger fails CAL is still free to do what it wants.

CAL could go to NWA with a pile of money and try to buy that ticket from them, but if NWA says no there's nothing they can do. This has been a common practice in corps. and goverments since the 1980s. It's effective and can't be circumvented. That one share, the golden share, has the authority to overide all the other shares. If the shareholders want to merge, and NWA says no, that one share makes their voice official.

Quote:

Typically, the nominal shares grant the owners the right to outvote all other shares in specified circumstances. In Northwest’s case, its golden share enabled the company to block Continental from merging with another airline.

If Northwest enters into a merger agreement before Continental, however, Continental is entitled to redeem the golden share for $100. That’s true, even if an announced Northwest merger does not ultimately take place.

Calyon Securities analyst Raymond Neidl, however, believes that Northwest will be the first to move. “We anticipate the process will be led off by Delta and Northwest proposing a combination,” he said.

In that case, Continental would be free to hook up with another airline. Mr. Neidl predicts that the carrier will attempt to partner with United Airlines.

Quote:

Originally Posted by Mesabah (Post 322876)

DTW is a dying economy.

Still is NWA's biggest and most profitable hub