Quote:
Originally Posted by Fiorenza
The feds would never allow a United-Delta merger. It's a non-starter. They didn't agree to the United-US Air deal a couple of years ago.
|
First they didn't allow the UA / US merger because they were never able to prove that they would not be a monopoly. At that time it wasn't a merger to simplify it was a merger for the sake of merging. They were not willing to cut the overlapping routs or aircraft. The merger was a mess.
Having said that DL and UA are two different beasts. Where DL is king east of the Mississippi and over the Atlantic UA controls the west and everything over the Pacific. Also all of UA's long haul aircraft are Boeing and they have a formidable 747 and 777 fleet. They also have the worlds largest Trans pacific rout structure.
Having said that they also have a Mount Everest of debt even after their bankruptcy, their management team sucks, and they are the founding member of the star alliance. Merging with UA would come with significant baggage.
While Northwest is also out of sorts they did eliminate a big chunk of debt in their bankruptcy. They would be far less expensive to buy out, they are already involved in SkyTeam and they have the worlds second largest rout structure over the Pacific. Any one keeping up with the Australian open skies knows that the governments are looking at allowing it by way of an Asian hub and we all know that NW is the second largest carrier into TYO.
Now while I have never been in favor of a NW merge between NW or UA I stand strongly behind NW.
FYI: if you are in the UA camp you might be sorely disappointed. It could still go either way but the hint hint wink wink that I got was in favor of NW. That's just what I hear from the little birdie that whispers in my ear from time to time. Also the announcement may be a LOT sooner than what people are thinking.

Just smile and watch... this moth will be fun!