It would seem to me that the pilots at USAir/AWA would now potentially get a fire under their butts to resolve something since there will definitely be a small window to make a deal with AA before or after they emerge from Bankruptcy.

Has anyone heard any about any movement at USAir regarding the stagnation that's been going on since 2005. I imagine no investors are going to fund a NEW merger with USAir before they've completed the old one from 7 years ago.

It's a lot more quiet than I thought regarding this. It would seem like a smart thing for them to throw a decent contract at their pilots to try and heal some wounds and give investors some "good faith" that they can resolve their issues.

Just wondering if the management thinks they can do jack squat with their "crap sandwich" or if they've made some indication they need some closure soon if they want to cut a deal with AA.

They just announced a TA with the flight attendants this morning, maybe they are starting to realize they need to put things together.

They type of institutional investor groups who would fund such a merger don't care - or probably even know about - such trifles as east/west pilot squabbles. If they project an acceptable ROI on the deal it will get done.

They better get it together, a return of ALPA is a possibility

Delta Weighs a US Air Deal


By GINA CHON, ANUPREETA DAS and SUSAN CAREY

Delta Air Lines Inc. is studying US Airways Group Inc. as a possible acquisition target, people familiar with the matter said, as U.S. carriers prepare for a new round of consolidation.

Delta, the world's No. 2 airline by traffic, also has been assessing a similar move for American Airlines parent AMR Corp., the people have said.

Delta is studying possible deals with US Airways or American Airlines.

Delta is working with Goldman Sachs Group Inc. as one of its financial advisers, along with Blackstone Group, the people said.

Delta sees itself as a consolidator in the airline industry and is studying several options, the people added. AMR entered bankruptcy-court protection in late November.

Delta hasn't yet approached US Airways, the No. 5 U.S. airline, and is still weighing which deal if any would make most sense and have the best odds of success, the people familiar with the matter said. Delta's last transaction was in 2008, when it acquired Northwest Airlines.

US Airways is open to being both a buyer or a seller and is expecting Delta to reach out, the people said. US Airways also is looking at a possible tie-up with AMR, US Airways has said. A marriage of US Airways and AMR would form a company on par with Delta or United.

The posturing signals a possible new wave of U.S. airline consolidation, following a string of mergers and acquisitions in the past seven years.

The recent tie-ups have formed larger airlines and reduced the number of major U.S. carriers to five from roughly triple that number 20 years ago.

The consolidation has helped the surviving airlines jettison money-losing routes, raise ticket prices and tighten control on their hub airports.

A Delta-American combo could draw antitrust scrutiny, given the massive size of the merged company.

Delta has conducted an antitrust analysis and believes with concessions, it would have a good chance of obtaining regulatory approval, people familiar with the matter said. AMR is the No. 3 U.S. airline.

The people cautioned that these are very early-stage explorations and any deal, if it happens, may not be reached until a year or so from now.

US Airways has looked for other partners in the past. In 2010, US Airways was in talks with United Airlines but United ended up merging with Continental Airlines to form United Continental Holdings Inc. That was the second time US Airways and United talked about a combination.

In 2006, US Airways made a $8.7 billion hostile bid for Delta when that company was in bankruptcy proceedings, but that effort failed. US Airways itself is the product of a 2005 merger of the old US Airways, which was coming out of bankruptcy, and America West Airlines.

Delta, which is part of the global SkyTeam marketing alliance, likely would try to pull any potential merger partner into its alliance, the people said. Airline alliances let members steer business to each other and, in some cases, link frequent-flier awards and perks.

US Airways is in the Star Alliance, the largest of the global airline marketing groupings, which also counts as a member United Continental.

If US Airways were to merge with another airline, it would be open to joining another alliance, people familiar with the matter said. AMR is part of the Oneworld alliance, the smallest of the global clubs.

Other potential suitors for AMR include private-equity firm TPG Capital, which has experience investing in the airline industry. It isn't clear what role, if any, AMR's main European partner in Oneworld, International Consolidated Airlines Group SA, would seek to play in controlling the fate of AMR. IAG is the parent of British Airways and Spain's Iberia.


Delta Weighs a US Air Deal - WSJ.com

The seniority issue is now in the hands of the Federal Judge in PHX. Most here feel that that process (including appeals) will eventually resolve the matter. The FAs did get a TA for a joint agreement - I've heard very little on details as yet, but if it is ratified that leaves the pilots as the only group not fully integrated. I agree with all those who say that the seniority issue - as big a deal as it is to those on the inside - will be viewed as nothing more than a minor stumbling block, and will not prevent a deal from being done if it otherwise meets the requirements of the parties. And that's true whether US is the acquirer (AA) or is the acquired (DL).

Isn't it ironic, though, that three years after Delta fought tooth and nail to avoid US buying them, they are now apparently considering turning around and buying US?

Venetianfrycook said:

"Isn't it ironic, though, that three years after Delta fought tooth and nail to avoid US buying them, they are now apparently considering turning around and buying US?[/QUOTE]

I do not think "irony" has anything to do with this potential merger. Its more than likely that DAL was already courting NW, when US threw a wrench in the process. Remember DAL and NW filled BK within 24 hrs of each other.
DAL did a stupendous job at keeping the cards close to their chest.

"Irony" in and of itself generally does not influence the outcome of future events. Whether or not the current situation is ironic or not, is a matter of opinion.

It's like rain on your wedding day.

That is why I have my doubts this "leak" is a serious delta play for lcc

I do not think "irony" has anything to do with their first merger outcome. Its more than likely that DAL was already courting NW, when US threw a wrench in the process. Remember DAL and NW filled BK within 24 hrs of each other.
DAL did a stupendous job at keeping the cards close to their chest.[/QUOTE]

Very unlikely, way too much route and hub overlap out East. The only beneficiaries would be Jetblue and Southwest picking up the scraps thrown out by government regulators.