On Again? Delta - Northwest Merger

[roadwarrior]

Originally Posted by Unity77

^ LOL!! Give 100,000 employees and retirees access to both airlines' route systems for free, standby travel. Now that makes perfect sense.

The chances of this merger/takeover happening look slimmer each day.

A friend of mine works for one of the major airlines. He and his girlfriend recently flew out to SF to visit me. For the entire weekend, he was micromanaging the load factors on all return flights, stressing that he wouldn't be able to get back home. I don't think this is exactly what I would call a "perk", if you can't get a relaxing getaway. No thanks!

[Unity77]

Originally Posted by delts145

But actually Unity77, isn't that pretty much standard procedure anyway? I think Delta is just telling the former eployees of the soon-to-be Northwest change that they will still be able to continue that benefit.

What's the point of merging if they aren't going to change their ways? The execs. say they are going to keep all hubs, most routes, and apparently benefits such as free, stand by travel. If this merger happens, which I think is now 50/50, and the airline continues with old business practices, it will be filing for bankruptcy within 5 years.

[Unity77]

Originally Posted by roadwarrior

A friend of mine works for one of the major airlines. He and his girlfriend recently flew out to SF to visit me. For the entire weekend, he was micromanaging the load factors on all return flights, stressing that he wouldn't be able to get back home. I don't think this is exactly what I would call a "perk", if you can't get a relaxing getaway. No thanks!

Yeah. I've heard plenty of stories from those who used to fly standby and you're right; it's not much of a perk.

[delts145]

Originally Posted by Unity77

Yeah. I've heard plenty of stories from those who used to fly standby and you're right; it's not much of a perk.

I don't know however, I guess maybe it's a mixed bag. My nephew is a pilot for Skywest(Delta's connector) He and his wife absolutely love it!!! They lunch in Paris, London, take romantic getaways to Honolulu, Cancun and on and on. And it only costs them pennies on the dollar. I'm constantly harassing them for their jet-set excess. LOL.

[urbanflyer]

^^
It's a great perk if you're not an idiot and try to travel during busy periods. Nothing like launching off to Europe or Asia for $130 in business class.

[delts145]

Hey Urbanflyer, I say, if there's someone out there who doesn't want this perk, "I'll gladly take it off their hands."

[delts145]

Northwest-Delta union to open gateway to Asia
- One airline owns coveted routes needed for growth

By Craig Simons
Cox NewsService

BEIJING - Take a look at this city's newest airport terminal and it will help you understand why Delta Air Lines wants to merge with Northwest Airlines.
When it opened in February, the $3.6 billion structure roughly doubled the number of passengers who can fly in and out of China's capital. By some accounts, sleek and spacious Terminal 3 at Beijing Capital International Airport is the world's largest building of its kind, with hallways of gates and shops and restaurants that stretch for two miles.
Its hulking size highlights China's massive population and rapid economic growth. Analysts expect it will become one of the world's five busiest air terminals in coming years. Officials already are drawing up plans for a second international airport in Beijing and another 96 airports throughout China in the next 12 years.
Multiply that kind of growth - and demand for air travel - across dozens of Asian cities and you get a sense of what's at stake in the region.
''Northwest's strong Asia routes were the most critical factor for Delta because they know that's where the growth is,'' said Michael Boyd, president of The Boyd Group, a Colorado-based consulting firm to the aviation industry. ''It was probably half the value of the whole deal.''
Michael Miller, CEO of Green Skies Inc., a consulting firm in Florida, said that Northwest's Asia routes were ''the single-largest
reason why Delta wanted to merge with Northwest.''
Although the number of air passengers worldwide is growing at roughly 5 percent annually, in Asia growth has been ''about 6 percent and will continue to outpace the world average for the next 10 or 20 years,'' said Nicholas Ionides, a Singapore-based journalist with aviation industry magazine Flight International.
Boeing, the aircraft manufacturer, estimated in a market analysis last year that demand for trans-Pacific flights would grow at an average annual rate of 6.2 percent until 2026, the highest rate of any major international route.
Northwest, the fifth-largest carrier in the United States, has the most extensive Asian route network of any American airline and is well positioned to tap that growth. (Delta's westernmost hub, at Salt Lake City International Airport, has been mentioned as a possible launching point for more trans-Pacific flights if the merger is completed.)
Northwest began flying to Asia after World War II and operates 220 weekly flights from Asian cities, including Bangkok, Manila and Singapore. Only it and United Airlines have the rights to fly from Tokyo to other cities in Asia.
Northwest also owns coveted rights to fly daily to China's three largest cities: Beijing, Shanghai and Guangzhou.
Delta, in contrast, offers only 18 weekly flights to three Asian destinations: Tokyo, Shanghai and Incheon, South Korea. But it operates the third-largest flight network in the United States and has deep links with Europe and Latin America, making the merged airlines strong globally, experts said.
If the merger were approved by federal regulators, the new carrier - which would be the world's largest airline - would benefit because Asian passengers flying to the United States could connect to more domestic destinations, while Americans flying to Asia would have ''ten times more choices,'' Miller said.
''Northwest has had an incomplete flow in the domestic service connecting to Asia, and Delta fills in every single hole that they had."
The new airline also would benefit from travel between Asia and Latin America. Roughly 80 percent of people flying from Central and South American nations to Asia connect through the United States. Because trade between the regions is ''growing in leaps and bounds'' the market is very important, said Bob Cortelyou, Delta's senior vice president for network planning.
Carriers also value international routes because they tend to be more profitable than domestic flights.
In the United States, older ''legacy'' airlines that include Delta and Northwest have lost domestic market share to discount carriers and have been forced to cut prices as customers use the Internet to find cheap fares.
As profitability has fallen, executives have reduced their domestic routes, while expanding their international business.
International routes tend to be more profitable because passengers are willing to pay premiums for long-haul business-class and first-class seating.
With Asia's economies surging, demand for luxury travel is likely to build.
Last month, Singapore Airlines announced that it would begin daily business-class-only flights between Asia and the United States, a development that Miller said ''shows how valuable business travel internationally is.''
Financial pressures and the proposed Delta-Northwest merger have prompted United Airlines and US Airways into merger talks.
Delta and Northwest now have to convince the Justice Department that its merger will not hurt American consumers by leading to higher prices or limiting choice.
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[delts145]

Delta pilots approve changes to contract

http://www.deseretnews.com/article/1...225949,00.html

[delts145]

Bon voyage - Delta begins nonstop flights from Salt Lake to Paris

http://deseretnews.com/article/1,5143,700231276,00.html


(Geoffrey McAllister, Deseret News)

Delta and state economic development officials could not have hoped for more from the only nonstop service by a U.S. carrier between the western U.S. and Paris.


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[DallasTexan]

Originally Posted by urbanflyer

^^
It's a great perk if you're not an idiot and try to travel during busy periods. Nothing like launching off to Europe or Asia for $130 in business class.

Exactly. I just flew to Portland for $15.00.

Gotta love it

[DENrising]

Originally Posted by Optimus Prime

Exactly. I just flew to Portland for $15.00.

Gotta love it

I am very surprised airlines haven't cut back or changed the interline agreements by now due to the fuel costs. I bet it happens before long. But it's nice to be able to get those discounts.

[delts145]

Pinnacle being dropped as a Delta Connection partner

By Harry R. Weber
The Associated Press

ATLANTA — Pinnacle Airlines Corp. shares fell nearly 25 percent Tuesday, after it disclosed that Delta Air Lines Inc. plans to cancel its flying contract with the regional carrier, citing poor on-time performance.
Northwest Airlines Corp., Pinnacle's biggest customer, has no current plans to change its relationship with Pinnacle. However, Delta is acquiring Northwest, worrying investors about what that might mean for Pinnacle's future if the contract termination sticks.

"We think today's news shows how a Delta-Northwest merger may hurt Pinnacle," Standard & Poor's airline analyst Jim Corridore said in a research note.

Pinnacle. based in Memphis, Tenn., called the move against it by Delta "wrongful," saying its on-time performance has been hurt by factors beyond its control. It said the operational schedule created by Delta is a key factor affecting on-time performance.

Pinnacle said it plans to pursue "appropriate remedies," though it wasn't more specific. The move by Delta would affect nearly 5 percent of the fleet maintained by Pinnacle Airlines Corp., which operates Pinnacle and Colgan Air. The Delta contract represents about $3.5 million in monthly revenue for Pinnacle, which recorded $787 million in annual revenue last year, Pinnacle spokesman Joe Williams said.

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[delts145]

Delta pilot leaders approve merger contract



Danny Chan La, Deseret News

Bloomberg News

Bloomberg News
Article Last Updated: 06/26/2008 11:35:51 PM MDT


Delta Air Lines Inc. pilot leaders have approved a tentative contract agreement with the third-largest U.S. carrier and their peers at merger partner Northwest Airlines Corp.
The accord includes a plan to create a single union seniority list, clearing a hurdle in a tie-up that will create the world's largest airline. Delta has said it expects to complete its all-stock purchase of Northwest by the end of 2008.
''This agreement represents an important milestone in the process of combining Delta and Northwest pilots into the largest unified pilot group in the world,'' Delta's union chairman, Lee Moak, said in a letter to members.
Leaders of Northwest's Air Line Pilots Association chapter also were considering the proposal. Delta's pilot leaders unanimously approved the accord, Moak wrote. It's the first time two airline pilot unions have negotiated a joint contract before the closing of a merger, he said.
Approval by Northwest's pilot leadership would send the accord to Delta's 7,300 pilots and their 5,000 counterparts at Northwest. If ratified, the contract would run through 2012.

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[delts145]

Northwest and Delta pilots agree- Collective bargaining pact will take effect when the two carriers merge

By Paul Beebe
The Slat Lake Tribune

Pilots at Delta Air Lines and Northwest Airlines have approved a joint collective bargaining agreement to take effect when the carriers merge, but still don't have a deal to combine their seniority lists.
The labor agreement covers roughly 10,600 pilots at the airlines. Of 6,231 eligible Delta pilots, 82 percent cast ballots and 62 percent voted in favor, Delta's pilot union said Monday.
"You've got to think that's a pretty good majority. The Delta pilots have gone through bankruptcy and gone through thwarting a hostile takeover by US Airways. I view this as a positive," said Mark Saltzman, a pilot for the carrier and head of the Air Line Pilots Association chapter representing 600 Salt Lake City-based Delta pilots.
At Northwest, 81 percent of 4,371 eligible pilots took part in the voting, with 87 percent of those casting ballots for the agreement.
The accord is an important step for the proposed stock-swap combination of the two airlines, announced April 14. Although pilots can't stop the merger, their pact is a step toward ensuring labor harmony after the deal closes later this year.
Although an accord to integrate seniority lists remains elusive, the agreement announced Monday establishes a procedure for reaching a settlement by Nov. 20. Negotiators for the pilot groups have given themselves a deadline of today to come to terms on seniority. If they can't, the sides will submit to binding arbitration.
"The big picture here is that Delta [and Northwest] pilots have done something that has never been done before in history - that is to have a joint contract and a seniority list negotiated before the date of corporate closing, That's hugely significant," said Delta pilot Ed Thiel, who is based in Salt Lake.
The combination of Delta, the No. 3 U.S. carrier by passenger numbers, and No. 5 Northwest is still subject to approval by U.S. regulators and shareholders of both airlines. European regulators approved the merger last week.
The joint contract agreement gives pilots compounded raises totaling 18 percent over four years.
Delta aviators will receive a 5 percent increase next year, followed by 4 percent raises in each of the following three years, Thiel said.
Northwest pilots, whose wages are about 10 percent below those of their Delta counterparts, will get a 15 percent raise after the merger. They will receive 4 percent wage increases in each of the following years, Thiel said.
The contract agreement also calls for Northwest pilots to receive a 2.38 percent equity stake in the new Delta. Delta pilots, whose numbers are larger, will get a 3.5 percent stake.
"The good thing is this will allow Delta to be very successful in the coming years and will lead to a much better contract in the future," Thiel said.
pbeebe@sltrib.com

Related developments
* Because of cost-cutting,, Delta Air Lines, United Airlines and four more of the largest U.S. carriers could post profits in 2009 should oil prices remain around $115 a barrel, Morgan Stanley analyst William Greene said. His profit outlook runs counter to most analysts' loss projections.
* The union representing pilots at United Airlines, angry that pilots have not received additional compensation, urged CEO Glenn Tilton to resign, accusing him of steering the No. 2 carrier down a path to poor customer service, employee morale and financial performance.

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[DrumCorpsAlum]

I booked a flight on Delta and they stuck me on a NWA jet. I wasn't happy about that. There were no snacks.

[delts145]

Delta-Northwest merger looks likely soon

http://www.deseretnews.com/article/1...252137,00.html

...With no more congressional reviews planned, conventional wisdom now holds that the proposed merger of Delta Air Lines and Northwest Airlines will be completed this year without any major new political objections...

...Frank Werner, a Fordham University professor who has been studying the proposed merger, said politics is playing a role in the merger's timing. "They are hustling to get this done before the Bush administration leaves," he said.
The airlines "chose to announce this merger in 2008 in part because of their belief that the Bush administration has been very pro-management," Werner said. "Historically, Democrats have been more critical of mergers," and even a White House under Republican John McCain may be more skeptical of the benefits of a reduced number of major carriers, he said.

...Werner said that given how fares have risen and routes reduced this year, "I'm a little bit surprised there hasn't been more outcry from the public," he said. But the answer may be that fuel prices have risen so high consumers actually have sympathy for the carriers, rather than resentment, he said.

"Every individual is hurting too," he said. "So maybe the merger is an easier sell for the airlines."

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[delts145]

Delta, Northwest shareholders approve combining the airlines


(pic by Danny Chan, Deseret News) Two Northwest and Delta Air Lines planes taxi to a departure runway before taking off from Salt Lake City International, which will soon become North America's Western Hub for the world's largest airline.

By Joshua Freed and Harry R. Weber
The Associate Press

Delta Air Lines Inc. and Northwest Airlines Corp. shareholders gave the go-ahead Thursday to a combination that would create the world's biggest carrier, deciding that in their volatile industry they like their chances better together than on their own.
The stock-swap deal announced April 14 still requires Justice Department approval. One other potential hurdle is a federal court lawsuit seeking to block the deal that is set for trial Nov. 5 in San Francisco.
Delta Chief Executive Richard Anderson, who will keep his position after the combination, would not discuss the lawsuit, but he indicated the carrier maintains its goal of completing the deal by the end of the year.
''We are still focused on that timeline and believe we can accomplish the timeline as stated,'' Anderson told reporters after the Delta shareholder vote.
At a Delta meeting near Atlanta, 99 percent of shares voted were in favor of issuing new stock as part of the transaction. Earlier in the day, at a meeting in New York, 98 percent of Northwest shares voted were in favor of Delta acquiring Northwest.
Delta has said that after the merger it will maintain its hub in Salt Lake City where it employs 3,500 people, including 600 pilots.
The deal was not trumpeted by everyone. A few retired Delta pilots complained that current employees will get equity when the deal is completed, but retired pilots won't. They suggested Delta consider reinstating the defined benefit pension plan for pilots that the airline terminated while the carrier was under bankruptcy protection.
Anderson said he understood the retired pilots' concerns, but he was firm that the pension termination was final.
''I think we've been clear we're not going to reopen that issue,'' Anderson said.
Northwest shareholders will get 1.25 shares of Delta stock for each share they own if the combination is completed. That values Northwest at roughly $2.8 billion, based on Delta's current stock price and the 277 million Northwest shares outstanding or still to be issued as part of its bankruptcy reorganization plan. That's about $800 million less than the value when the deal was announced.
The combined airline would be called Delta and keep its Atlanta headquarters. Northwest would become a wholly owned subsidiary of Delta during the integration process. Delta hopes to obtain a single Federal Aviation Administration operating certificate in 15 to 18 months.

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[delts145]

"Domo Arigatou Gozaimasu" - Salt Lake City Direct to Tokyo? - It worked with Paris. Maybe it will work with Tokyo

http://www.deseretnews.com/article/1...265368,00.html


wired.com

Friday, October 10, 2008 — Last update: 1:21 a.m.

It worked with Paris. Maybe it will work with Tokyo.

That was the thinking of a state board that committed money Thursday to help get Delta Air Lines to start direct flights between Salt Lake City International Airport and Tokyo in mid-2009.

The Governor's Office of Economic Development committed $250,000 in Industrial Assistance Fund money, which will be part of a pool of $2 million in cash and marketing help from GOED...

The idea is to help promote the flights, making it economically attractive for Delta to start that service.

"This is incredibly important to the business community," said Jerry Oldroyd, chairman of the board's incentives committee. He said Tokyo flights could open up Korean, Chinese and other Asian markets for Utah businesses, as well as opportunities for businesses there to expand into Utah.

The state money would be paid after the first flight. Salt Lake is Delta's second-largest U.S. hub, with 373 flights daily to 114 destinations. GOED board documents indicate that Delta has estimated that the new service could have an overall economic impact of $90 million for Utah and could lead to the creation of 1,100 local jobs.

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[delts145]

Delta to add direct route from Salt Lake City-to-Tokyo?

By Paul Beebe

Delta Air Lines is beginning to look past its successful Salt Lake City-to-Paris route and is contemplating a second international destination, possibly Tokyo.
On Thursday, the board of the Governor's Office of Economic Development agreed to give Delta $250,000 after the airline broached the idea of starting a route from its Salt Lake City hub to Japan's capital, GOED Executive Director Jason Perry said.
The money would be added to a $2 million incentive package being assembled by an alliance of public and private groups, including Salt Lake City International Airport and Salt Lake County, Perry said.
"Should the incentive be accepted by them, I would expect an announcement of their intent to start this flight in the very near future, with the flight to actually begin some time next year," he said.
Delta spokesman Anthony Black said the Paris route launched last June has been a hit with travelers. Because the route proved itself, the Atlanta-based carrier now is "interested in exploring additional international opportunities," he said.
Black refused to say where Delta may fly to next, but he said any route "likely would focus on other hubs where we either have a partner there or have a natural system to feed flights in or out of."
GOED's readiness to help Delta comes as the Atlanta-based carrier is about to consummate its proposed merger with Northwest Airlines. The combination would create the world's biggest carrier and give Delta a toehold at Tokyo's Narita International Airport, where Northwest has a hub.
Earlier this year, Delta executives said more international flights might be possible if the Paris route made a tidy profit for the airline. While the airline isn't publicly saying it will fly to Tokyo, it apparently is serious. Companies don't usually approach GOED unless they are close to making a decision.
In April, Delta President Ed Bastian said Amsterdam, where Northwest also has a hub, might be a candidate. A month later, Glen Hauenstein, executive vice president of network planning and revenue management, said the airline might be flying to Tokyo in 2011.
On Thursday, another possibility emerged: London.
"We are still discussing the possibilities, and this is one," said airport spokeswoman Barbara Gann.
Gann said the airport's part of the Tokyo incentive package is $1.4 million, including fee waivers and marketing support. The airport presented its offer to Delta on Oct. 1, she said.
Perry said passengers are snapping up seats on the daily flights between Salt Lake and Charles de Gaulle International Airport in Paris.
In its request to GOED, Delta said a Tokyo flight would make other Asian markets including South Korea and China more accessible to Utah businesses. Delta said the economic impact of the route would exceed $90 million a year and would potentially create at least 1,100 jobs in Utah's economy.
"This Tokyo flight shows the [Delta-Northwest] merger will be a good thing for the state of Utah, and that Salt Lake City is an important hub to Delta," Perry said. [/b]

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[DENrising]

SLCIA may need to seriously think about expanding in the future. If there are additional routes to Asia, Europe, etc. it will need to handle this extra traffic some how. I think in the short term, Concourse D should be used as an International concourse (it's close to the Customs area at E). Also, I think it can best handle the larger 777's and 767's.

But then again, with the fuel costs, I think Delta has cut back some 10% on domestic capacity, so maybe a larger International presence will soak up this loss. In any event, one day in the near future, the airport will need to expand, probably with midfield concourses.

I'm happy the SLC-CDG route is working so well, it will only improve service to more locations. go DELTA!!!