Proposed Merger of USAirways with Delta
#4

Joined: Jan 2003
Posts: 35,153
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A "hostile takeover"? This isn't a country being invaded, it's just a company being bought. If the stock is for sale, anyone can buy it, so how can that be hostile. I think that CEO needs to get over the idea that he's running a country and is a king or something. I suspect he has some value of stock to lose or something, and that's all he cares about (the one that refused to merger and considers this "hostile"
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#6
Joined: Oct 2003
Posts: 3,759
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Based on the offer it would be silly for the Delta share-holders to reject it. By the same token (being a current US Air captive residing in CLT) I see little reason that it would benefit us. Particularly since it would give Delta/US Air a virtual monopoly in even more markets, especially in the SE. So better access to certain locations but someone has to pay the $8B cost, right ?
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#11
Joined: May 2003
Posts: 2,801
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Christina,
based on the legitimate assumption that the management of a company has a specific policy to follow in order to create growth and profits and as its shareholders are likely to back such policy (otherwise the management would not hold the jobs they have), it is perfectly adequate to consider a proposal of a takeover that the management does not find to be coherent with its own strategy "hostile".
However, I do not think US Airways' bid may be considered hostile yet - as the Delta management has pointed out that while they originally intended to survive on their own, they are indeed going to assess the offer.
based on the legitimate assumption that the management of a company has a specific policy to follow in order to create growth and profits and as its shareholders are likely to back such policy (otherwise the management would not hold the jobs they have), it is perfectly adequate to consider a proposal of a takeover that the management does not find to be coherent with its own strategy "hostile".
However, I do not think US Airways' bid may be considered hostile yet - as the Delta management has pointed out that while they originally intended to survive on their own, they are indeed going to assess the offer.
#12
Joined: Nov 2005
Posts: 460
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Dukey, please try to be mature and not inject petty partisan politics into travel treads. I'd hate to think that the only way you can feel good about yourself is by bad mouthing decent people who are more accomplished then you can ever hope to be. OBTW, I thought you were talking about the new Speaker of the House.
#13
Joined: Jul 2006
Posts: 1,836
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The whole industry consolidation thing seems to be getting a tad out of hand. DL already has an allianc with AF-KLM, and US was with UA which is in LH Star Alliance...
My inlaws are Pittsburgers (Pittsburghians) though it doesn't really affect us since US scrapped London-PIT routes years ago, and I hate transit via PHL.
My inlaws are Pittsburgers (Pittsburghians) though it doesn't really affect us since US scrapped London-PIT routes years ago, and I hate transit via PHL.
#14
Joined: Jan 2003
Posts: 1,655
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They didn't mention if they would stay with the Star Alliance or go with Skyteam. If they merge I hope its Star.
I don't really think the justice dept will let this happen. Delta and USAirways have too many overlapping routes in the Northeast and Southeast. When United tried to merge with USAirways a few years ago the whole thing belly flopped.
Now if Continental and United merged, that would be a good thing.
I don't really think the justice dept will let this happen. Delta and USAirways have too many overlapping routes in the Northeast and Southeast. When United tried to merge with USAirways a few years ago the whole thing belly flopped.
Now if Continental and United merged, that would be a good thing.
#15
Joined: Jan 2003
Posts: 2,130
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On the other side of the coin, this will greatly affect my husband, who is currently furloughed from USAirways (third time in his aviation career). With the merger, that means he might never get his job back. Delta has lots of furloughed pilots too, so pool all the pilots together based on senority and that pushes Tony further down. I know he loves freeloading off me
but geeze he needs to get back to work! 
Monica
but geeze he needs to get back to work! 
Monica
#16
Joined: Feb 2003
Posts: 3,977
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Which is more important: preservation of functioning air service or preservation of competition? Inasmuch as America has no rational transportation policy (just as we have no functioning or rational energy policy, immigration policy, or trade policy), I hold little hope for anything good coming out of Delta/US Air talks other than hefty fees for investment bankers and golden parachutes for management. For the employees and for consumers? Nothing.
#17
Joined: Sep 2003
Posts: 2,420
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Let's take an airline that most frequent flyers agree is amoung the WORST run in the industry and let them get bigger. Talk about a NIGHTMARE! (USAir is still trying to get the IT systems from it's last merger working.. so since they can't get that merger to work well, it's time to do another one) This airline appears to be run by folks who care more about headlines then running and AIRLINE!

