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Old February 8th, 2008, 06:46 PM   #321
FM 2258
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What? The only reason I don't like these mergers is the loss of some very classic brands.

I guess some people felt the same way when the Eastern, Pan Am and Braniff names went away. Northwest has some nice colors I'd hate to see leave the skies.
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Old February 8th, 2008, 07:33 PM   #322
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Time to start treasuring these shots?





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Old February 8th, 2008, 08:46 PM   #323
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I think the Northwest brand name is certainly more well respected and meaningful than Delta's is. Northwest was a pioneer to the Orient, whereas Delta is known for building a congested, nasty airport in Atlanta where people get processed like cattle.

I'm surprised that Northwest is giving up their identity and also their HQ, since they are the ones doing the buying.
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Old February 9th, 2008, 06:11 AM   #324
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A Delta-Northwest deal is expected to trigger others as players vie to keep heavyweight status
8 February 2008

DALLAS (AP) - The Delta-Northwest combination inching toward completion would create a new world leader, leapfrogging American Airlines and the Air France-KLM tandem in passenger traffic, but would also likely trigger a chain reaction of other deals, with unknown consequences for travelers.

The next potential deal in line -- United and Continental -- would be even bigger, and other pairings are likely too as carriers bulk up to compete in the new, more competitive global airline industry.

Executives at the big airlines believe that unless you have lots of planes flying at convenient times to many cities, valued corporate travelers won't remember you the next time they book a flight.

The economics of the airline industry also are driving carriers into each others' arms.

High fuel prices are causing many airlines to lose money, and the threat of recession makes the outlook even more grim. Airlines have raised fares, but not enough to offset fuel. Conventional wisdom holds that in mergers, airlines could reduce overlapping routes and raise prices.

Of the so-called legacy U.S. airlines -- those that existed before deregulation and operate hub-and-spoke route networks -- Continental Airlines Inc. has been the most profitable since the industry downturn that began in 2001.

Continental's chief executive, Lawrence Kellner, says he would prefer to remain a stand-alone company but doesn't want to fall behind if others start merging.

"We do pay attention to relative size, and I think we would have some concern" if rivals merge, Kellner recently told analysts. He said he'll watch what competitors do, and "if we see something or hear something, we won't hesitate to act aggressively."

Northwest and Delta Air Lines Inc. have been talking about joining the two carriers, and people close to the talks say a deal could be announced as soon as next week.

In a memo to his employees Wednesday, Northwest Airlines Corp. CEO Doug Steenland said "consolidation is highly likely at some point," and doing nothing "could be our worst alternative."

"I do believe that consolidation is highly likely at some point -- particularly with the high cost of fuel and the other challenges that the industry faces," he said.

If Delta Air Lines Inc., the nation's third-largest airline, combines with No. 5 Northwest Airlines Corp., it would create the largest U.S. airline, passing United and the current leader, American Airlines.

But United, the second-largest, and No. 4 Continental could trump Delta by joining forces.

The history of airline mergers is mixed at best. It's a challenge to combine different aircraft fleets, labor unions and cultures.

"Mergers are always a problem, and that's why Continental is not in favor of one," says Raymond Neidl, an analyst for Calyon Securities. "They have always been expensive and sloppy."

Neidl said network carriers believe they need bulk to compete with each other and with growing European and Asian airlines, especially when limits on U.S.-Europe service are eased at the end of March.

Continental and United operate complementary route networks, making a combination attractive. Continental has a strong presence in Latin America and, from its hub in Newark, New Jersey, flying to Europe. United has strong routes across the Pacific, including in the growing Chinese market.

A Continental-United partnership wouldn't have as much global reach as Delta and Northwest -- an important consideration for business travelers -- "but it would certainly surpass either carrier by themselves and also American. It's not a bad second choice," said Robert Mann, an airline industry consultant.

Other potential partners for Continental and United "aren't in the same ballpark," he said. Many analysts believe antitrust concerns could prevent American from buying another big carrier.

Potential roadblocks to a deal could include the new company's name, whether it would be based at Continental's home in Houston or United's base in Chicago, and who would run it. Leadership issues reportedly have been a sticking point in the Delta-Northwest talks.

Roger King, an airline analyst for CreditSights, said United's name might survive, and there might be dual headquarters, but Wall Street prefers Continental's management team.

"One of the problems with United is that their (profit) margins aren't that good; they just can't seem to run an airline as well as Continental can," he said.

There are also parochial issues, such as a tax-abatement deal that requires Continental to keep at least 2,400 employees at its headquarters through the end of this year. And labor issues.

Jay Pierce, the new chairman of the pilots' union at Continental, said he worries a merger could cost jobs, and so pilots want stock in any new combined company as a condition for supporting the deal.

"The pilot group would be assuming risk" in a merger, he said. "Risk deserves reward."

United's unions say they won't block a deal if employees benefit -- they see consolidation as a chance to raise their pay, which was reduced when United parent UAL Corp. went through bankruptcy. The president of the United pilots' union, Steve Wallach, vows his group "will not rubber-stamp any merger unless and until our interests are addressed."

Continental is reported to be talking with United, but nobody expects it to announce anything before Northwest makes a deal. That's because Northwest holds a so-called golden share of Continental, allowing it to block a change in ownership at Continental.

Northwest once owned 6.7 million shares of Continental stock. The Justice Department sued Northwest, claiming that its controlling interest in another airline was anticompetitive. As part of a settlement in 2000, Northwest sold its Continental stock but got the golden share.

However, if control of Northwest itself changes -- as it would if it is acquired by Delta -- Continental can buy the share for $100.

The airlines declined to comment on possible deals. Executives' public remarks have been vague -- Continental's Kellner and United CEO Glenn Tilton have acknowledged only that their companies have examined how potential deals could affect them.

Tilton told employees this week, "The work we have done puts us in a strong position to participate in consolidation when the opportunity and the time is right for all of our stakeholders. No one will be making our decisions for us."

And what if Continental or United decide not to play musical chairs? What if, even in the face of a Delta-Northwest deal, they did nothing?

They might become takeover bait.

"Continental thinks they can survive on their own because of their strong hubs in the New York area and Houston and their international routes, but other airlines might be interested," said Neidl, the longtime industry analyst.

Even a Delta-Northwest curtain-raiser could draw competing offers -- some analysts think American's parent, AMR Corp., might bid for Northwest. There is speculation that US Airways Group Inc. could bid for Continental or United, although it might need a partner who can bring cash to the table.

------

Business writer Dave Carpenter in Chicago contributed to this report.
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Old February 9th, 2008, 04:30 PM   #325
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Also, if NWA leaves the Twin Cities as their HQ, they should get their checkbook out as they will have to pay hundreds of millions of dollars in penalties for the handouts they've received over the years. I know that they are accounting for this, but just sayin'.

I would also suspect that MSP will be fine as a hub for the merged airline as NWA makes a killing at MSP as we have no other choice...I think they have about 95% of the gates here.
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Old February 9th, 2008, 08:00 PM   #326
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Quote:
Originally Posted by Paddington View Post
I think the Northwest brand name is certainly more well respected and meaningful than Delta's is. Northwest was a pioneer to the Orient, whereas Delta is known for building a congested, nasty airport in Atlanta where people get processed like cattle.

I'm surprised that Northwest is giving up their identity and also their HQ, since they are the ones doing the buying.
Your hatred of Delta and Hartsfield must be clouding your reading skills. Delta is the one doing the takeover, not Northwest. Steenland as part of the merger is a deal-killer, he is not wanted or needed to do this deal.

Delta FYI is known for having more flights to more cities across the Atlantic than any other airline, no small feat. Delta didn't build Hartsfield either. It was a joint venture between Eastern, Delta & the City of Atlanta.

Say what you will about Hartsfield, but if my home airport was Port Columbus I personally would be quite a bit more humble in my rantings.
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Old February 9th, 2008, 08:48 PM   #327
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Quote:
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Your hatred of Delta and Hartsfield must be clouding your reading skills. Delta is the one doing the takeover, not Northwest. Steenland as part of the merger is a deal-killer, he is not wanted or needed to do this deal.

Delta FYI is known for having more flights to more cities across the Atlantic than any other airline, no small feat. Delta didn't build Hartsfield either. It was a joint venture between Eastern, Delta & the City of Atlanta.

Say what you will about Hartsfield, but if my home airport was Port Columbus I personally would be quite a bit more humble in my rantings.
YES! Love a good correction.
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Old February 9th, 2008, 08:50 PM   #328
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Time to start treasuring these shots?





Delta will be taking over Northwest. Northwest planes when merger happens will be painted with delta's colors and logos. I think it's very exciting that Delta will finally have 747s again.
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Old February 12th, 2008, 01:26 AM   #329
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The New Delta







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Old February 27th, 2008, 08:22 AM   #330
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ANALYSIS-Delta, Northwest pilots wary of merging

NEW YORK, Feb 26 (Reuters) - Bigger may not be better for Delta and Northwest pilots.

A possible merger between Delta Air Lines Inc and Northwest Airlines Corp to create the world's largest airline is in a holding pattern as the carriers' pilots wrangle over integrating seniority lists for more than 11,000 pilots.

Seniority rankings, which determine everything from a pilot's wages, hours worked, routes flown, and vacation time, are excruciatingly difficult to merge.

Unlike other professions, pilots cannot transfer the seniority they accumulate at one airline to another. For that reason, the blending of two seniority lists must result in some pilots losing seniority to others during the integration.

"It's almost never done without rancor and resentment," said Jim Gray, a retired Delta pilot, who chaired the organization that represented retired Delta pilots before and during the airline's bankruptcy.

Delta pilots generally make more money and fly newer planes than their counterparts at Northwest, while Northwest pilots tend to have more years of experience and want to protect their seniority.

Northwest pilots, for instance, want to keep the privilege of flying the carrier's big Boeing 747 aircraft in the Northwest family even after a merger. They have proposed fencing them off from pilots at Delta, which does not fly 747s, according to two people familiar with the negotiations.

Such rules could hamper integration and create internal tensions.

Representatives of the airlines and the pilot groups declined to comment on the pilot talks.

YOUNG DELTA

Another stumbling block is the fact that over a thousand Delta pilots took early retirement packages before Delta filed for bankruptcy in 2005.

"This had the effect of moving more junior pilots up the seniority list at a very rapid rate," said Dean Booth, a lawyer with Atlanta law firm Miller & Martin.

"They found themselves flying wide bodies at a much younger age than had been their expectation. They don't want to lose that status," said Booth, who has previously represented both Delta and Northwest.

Merging Northwest's pilots with the younger, yet senior, Delta pilots is creating friction.

"There is apparently this faction within the Northwest group that views the Delta pilots as younger, less experienced and less worthy, so to speak," airline consultant Robert Mann said.

Both sides are wary of making mistakes.

The Air Line Pilots Association (ALPA), which represents both Delta and Northwest pilots, is still smarting from its experience at US Airways Group , which formed in 2005 from the merger of US Airways and America West.

ALPA faces a movement to oust it at US Airways, which has not combined its pilots into a single group nearly three years after merging with America West, largely because of seniority issues.

Northwest pilots also know first-hand the risks of an ill-received seniority deal. Tensions, stemming from a rancorous integration of Northwest and Republic pilots after their 1986 merger, still course through the airline.

"Twenty-two years on, they still look out different windows," said retired Delta pilot Gray.

SWEETENING THE DEAL

Despite the difficulties, a deal is not dead.

Delta has offered the pilots a roughly 10 percent equity stake in the combined carrier. Both pilot groups also stand to get higher wages, with lower-paid Northwest pilots expected to get a relatively bigger raise, according to people familiar with the talks.

Also, pilot unions have generally accepted that the notoriously volatile U.S. airline industry needs to change in order to become more stable.

"Everyone has invested a ton of time in this," said Jerry Glass, president of F&H Solutions, a consulting group that has represented airlines in union negotiations. "That's a sign that they believe in it."
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Old March 27th, 2008, 09:06 AM   #331
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American Airlines cancels flights to conduct inspections

American Airlines cancels flights to conduct inspections

American Airlines canceled about 325 flights Wednesday to recheck some wiring installation on its MD-80 aircraft.

The inspection resulted in three canceled flights at Kansas City International Wednesday morning.

The grounding of the planes occurred following a joint audit conducted by American and Federal Aviation Administration officials, according to the airline. The FAA has been auditing the maintenance records of all U.S. carriers following Southwest Airlines’ maintenance problems two weeks ago that resulted in the cancellation of 126 flights for one day.

American said the reinspection had been completed on many of the aircraft by Wednesday morning. The 298 planes were re-entering the fleet and being taken out of service on a rolling basis throughout the day, said Tim Wagner, an American spokesman.

Wagner said the checks were being done at airports where the planes were parked before service began Wednesday. They did not require being sent to one of American’s three maintenance facilities, he added.

American, based in Fort Worth, operates an overhaul base in Kansas City.

The airline has 14 departures daily from KCI to Chicago and Dallas. At KCI, three of American’s MD-80s were parked and inspected Wednesday morning, said Gordon Clark, president of Transport Workers Union Local 530.

“It’s a relatively simple check,” Clark said. “We had our mechanics ready Wednesday morning to make sure we were in compliance.”

The inspection involves the spacing between two bundles of wiring in the auxiliary hydraulics systems of the planes. They are supposed to be one inch apart, and some planes were found to have them slightly further apart, Wagner said.

Most of American’s aircraft were parked at its hubs in Dallas and Chicago, where each airport on Wednesday had about 80 and 67 cancellations, respectively.

Wagner said most passengers affected by Wednesday’s cancellations were booked on other flights during the day, although some are flying today.

The FAA, under fire for its handling of safety inspections at Southwest Airlines, last week said it was ordering a check of maintenance records at all U.S. airlines. The FAA hit Southwest this month with a $10.2 million civil penalty for missing some inspections and then continuing to fly the planes with passengers on board after realizing the mistake. Dallas-based Southwest, which turned itself in when it discovered the oversight, plans to appeal.

The FAA’s preliminary audit on the maintenance operations of all the airlines should be completed by Friday, said Alison Duquette, an FAA spokeswoman.

“We should have a general idea of where all the airlines stand with respect to general compliance issues after that,” she said. “So far, we’re seeing a high rate of compliance on airworthiness directives.”

American Eagle, American’s regional carrier owned by parent AMR Corp., had to cancel 15 flights and ground 25 jets last Friday to review inspection paperwork on the aircraft. Wagner said American Eagle’s records had proved to be in order but the carrier elected to ground the planes for a few hours while awaiting the final FAA approval.


On Wednesday, American Airlines grounded more than 300 flights in order to inspect the spacing between two bundles of wiring in the auxiliary hydraulics systems of its MD-80 airplanes.

http://www.kansascity.com/business/story/548041.html
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Old March 27th, 2008, 10:31 PM   #332
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American, Delta Halt More Flights; Thousands Stranded (Update4)

March 27 (Bloomberg) -- AMR Corp.'s American Airlines, the world's largest carrier, and Delta Air Lines Inc. canceled a combined 400 flights to reinspect wiring on their Boeing Co. MD- 80 model jets.

Delta stranded a ``few thousand'' passengers in Atlanta as it began halting 275 flights, the company said. American scrubbed 132 flights today, after dropping 318 yesterday.

The cancellations follow Federal Aviation Administration checks on airline maintenance records for compliance with government directives. The FAA proposed a $10.2 million fine, the highest ever, against Southwest Airlines Co. on March 6 for flying 46 jets without proper inspections for fuselage cracks.

``The airlines are very sensitive to this right now, given the issues at Southwest,'' Michael Derchin, a New York-based analyst for FTN Midwest Research Securities Corp., said in an interview. ``They're moving very quickly to take corrective action.''

Today's cuts amount to 5.7 percent of American's primary jet operations and 3 percent of Delta's worldwide schedule.

AMR rose 2 cents to $8.63 and Delta declined 21 cents to $8.53 at 1:16 p.m. in New York Stock Exchange composite trading.

Delta, the third-largest U.S. airline, is checking all 117 of its MD-88s, spokeswoman Betsy Talton said in an interview. That represents about 20 percent of the Atlanta-based company's fleet. About 70 percent of the planes will be back in service later today, and all work is expected to be complete by tomorrow, she said.

Passengers Stranded

About 1,200 people ``had to spend the night at hotel Hartsfield,'' said Orzy Theus, a spokesman for Hartsfield- Jackson Atlanta International Airport, referring to passengers who slept in the airport's terminals after their Delta flights were canceled.

``Unfortunately, they had to make do in one of our less- than-comfortable chairs,'' Theus said. Several airport restaurants stayed open later than usual to feed hungry travelers, he said.

Most passengers affected by the cancellations were put up in hotels paid for by Delta or were driven to destinations that were within a couple hours of Atlanta, Talton said. She didn't immediately know how many flights were involved.

American is rechecking all 300 of its MD-80s, and at least 80 have needed modifications, spokesman Tim Wagner said. MD-80s make up about 46 percent of Fort Worth, Texas-based American's main jet fleet.

The checks aim to verify that the carriers properly installed a sleeve covering a wire bundle to an auxiliary hydraulic pump in the twin-engine planes. The sleeve is supposed to be attached to a wheel-well wall at one-inch (2.5-centimeter) intervals, the FAA said yesterday.

http://www.bloomberg.com/apps/news?p...1VqoY&refer=us
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Old March 27th, 2008, 11:39 PM   #333
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I love MD-80's, the best plane ever built. This is part of why I love American Airlines so much. There's no sweeter sound than the sound of the JT8D engines running except for the sound of a beautiful woman moaning in your ear....but that's a different subject altogether.
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Old March 30th, 2008, 02:47 AM   #334
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I love American Airlines because they skrimp on safety to boost their bottom line. Gotta love airline deregulation. Just another case of the private market failing to act in the public interest. Invisible hand my ass.
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Old March 30th, 2008, 04:00 AM   #335
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Why would you say American Airlines is unsafe? They're no AdamAir.

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Old March 31st, 2008, 03:03 AM   #336
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Aloha Airlines halting passenger service

Aloha Airlines halting passenger service

Aloha Airlines said Sunday it will halt all passenger service after Monday, signaling the end of an airline that has served Hawaii for more than 60 years.

Aloha, which filed for bankruptcy for Chapter 11 bankruptcy protection on March 21, was a casualty of fierce competition and rising fuel prices. The airline said it will stop taking reservations for flights after Monday.

"We simply ran out of time to find a qualified buyer or secure continued financing for our passenger business," said Aloha President David Banmiller in a statement. "We had no choice but to take this action."

Aloha has suffered since Phoenix-based Mesa Air Group Inc. launched a new interisland carrier called go! airlines in 2006, triggering a local airfare war.

Banmiller didn't mentioned go! by name in his statement, but did blame the company's demise on rival companies.

"Unfortunately, unfair competition has succeeded in driving us out of business," he said.

The company's Web site, http://www.alohaairlines.com, also announced the end of service.

Rising fuel prices, which have forced other airlines to raise fares and look for ways to cut expenses, also made it difficult for Aloha to operate. Aloha, the second-largest Hawaii carrier, has operated a fleet of 26 Boeing 737s to serve five airports statewide and six mainland U.S. destinations.

Aloha Airgroup Inc. was forced to file for Chapter 11 protection just over two years after it emerged from a previous trip through bankruptcy court.

Aloha said tickets for flights after Monday will not be honored. It said it is working to have UAL Inc.'s United Airlines accommodate passengers with tickets for Aloha's mainland to Hawaii flights. It hopes to seat those with interisland tickets on Hawaiian Airlines Inc.

Aloha has canceled Monday flights from Hawaii to the West Coast and between several cities in California and Nevada. It's last day for interisland travel will be Monday.

Aloha advised passengers who don't want to fly another airline and who want a refund to contact their travel agents or credit card companies. Those who paid by cash or check may file a claim in bankruptcy court.

The shutdown will affect about 1,900 employees. The company said air cargo services are to continue.

A Seattle company on Thursday offered to buy Aloha's cargo operations for an undisclosed amount. But Saltchuk Resources Inc. said it wasn't interested in taking over Aloha's passenger business.

Aloha Airlines was founded in 1946.

http://www.businessweek.com/ap/finan.../D8VO23900.htm
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Old March 31st, 2008, 05:43 AM   #337
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Wow, that really sucks. Sad to see such a classic airline go away. It would be nice if someone came in and bailed them out.
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Old March 31st, 2008, 03:47 PM   #338
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First Pan AM and now Aloha. Very sad.
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Old April 2nd, 2008, 11:33 PM   #339
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First Pan AM and now Aloha. Very sad.
please goschio there's been quite a few in between !
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Old April 3rd, 2008, 12:52 AM   #340
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next would be northwest.
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