Fri, Jan 11, 2008
United, Northwest Likely Candidates
Executives with Delta Air Lines went before the carrier's board
of directors Friday, seeking approval to enter into merger talks
with United Airlines and Northwest Airlines.
Delta CEO Richard Anderson wants the board's permission to start
detailed talks with those carriers, an anonymous source told USA
Today, as those airlines each offer route networks that would
compliment Delta's current flight schedule. Delta's board formed a
special committee to look at merger possibilities last year.
Investors responded to the news Thursday by driving stock prices
in all three airlines up. United closed the day up 23.7 percent,
while Northwest shares increased 30 percent, Delta's stock rose
18.2 percent.
While both carriers are seen as
potential choices for a Delta merger, many believe Northwest holds
an edge over United... if only because Anderson is the former CEO
of that airline. Northwest's network also overlaps less with
Delta's current routes, though both NWA and United would offer
Delta a much-needed foothold across the Pacific. Northwest and
Delta are also members of the SkyTeam alliance.
Fleet commonalities are a wash; both Northwest and United fly a
mix of Boeing and Airbus planes, while Delta's mainline fleet is
solely Boeing (and McDonnell Douglas).
Perhaps tellingly, United and Delta each fly Boeing 767s and 777s
on long-haul routes, while Northwest utilizes the Airbus A330.
United and Delta also use the Boeing 737 on domestic flights;
Northwest, a mix of AARP-eligible Douglas DC-9s and Airbus A319s
and A320s.
Calyon Securities' Ray Neidl cautioned investors and other
industry analysts to not get too excited, even if the Delta board
does grant permission for talks to begin.
"[I]t's just permission to start formal talks," he said. "Nothing
may come of it and they still would have to get regulatory
blessing."
The latter would pose a significant challenge... as a merger
between Delta with either United or Northwest would create the
largest domestic airline, surpassing American Airlines for that
title.
More News
Aero Linx: JAARS Nearly 1.5 billion people, using more than 5,500 languages, do not have a full Bible in their first language. Many of these people live in the most remote parts of>[...]
'Airplane Bounced Twice On The Grass Runway, Resulting In The Nose Wheel Separating From The Airplane...' Analysis: The pilot reported, “upon touchdown, the plane jumped back>[...]
"Burt is best known to the public for his historic designs of SpaceShipOne, Voyager, and GlobalFlyer, but for EAA members and aviation aficionados, his unique concepts began more t>[...]
"Polaris Dawn, the first of the program’s three human spaceflight missions, is targeted to launch to orbit no earlier than summer 2024. During the five-day mission, the crew >[...]
There Are SO Many Ways To Get YOUR Aero-News! It’s been a while since we have reminded everyone about all the ways we offer your daily dose of aviation news on-the-go...so he>[...]