Jaunted - Tag: airline mergers

Delta Announces World Domination Plans

pbb — 2008-11-12T14:00:12-05:00

This is why Delta wanted to hook up with Northwest so bad: The soon-to-be supercarrier announced 15 new routes today, 12 of which aren't served by any US airlines. The focus of the planned expansions? Japan, Africa and Europe.

Delta already had direct US-Africa flights on lockdown, but with more planes on hand, it will further expand service there, to cities like Cape Town, Lagos, Luanda and Monrovia. As for Japan, the former Northwest hub at Tokyo-Narita will now be at Delta's disposal, for extra in-bound flights from Atlanta, New York and Salt Lake City.

The additional destinations and frequencies are great news if you already live in or near Delta (or NWA) hubs, but those of you on the fringes of the system might be in for trouble:

To prepare for the summer 2009 schedule, Delta in January will increase connectivity between its US hubs to improve customers’ connections to the world. Overall, Delta will offer 14.5 percent more capacity between Atlanta, Detroit, Minneapolis, Cincinnati, Salt Lake City, New York and Memphis in January 2009 compared with the year prior.

This doesn't necessarily mean Delta will be cutting service to smaller markets... But it could!

Related Stories:
· Full Details on New Flights [Official Site]
· Delta-Northwest Merger Gets Justice Department Approval [Jaunted]

[Photo: Faithful Chant]

Delta-Northwest Merger Gets Justice Department Approval

pbb — 2008-10-29T16:02:06-05:00

US regulators have approved the merger of Delta and Northwest, which means the two are one step closer to a deal. A court case that could still block the tie-up goes to trial November 5.

The Department of Justice released a statement:

The proposed merger between Delta and Northwest is likely to produce substantial and credible efficiencies that will benefit US consumers and is not likely to substantially lessen competition.
The two airlines currently compete with a number of other legacy and low cost airlines in the provision of scheduled air passenger service on the vast majority of nonstop and connecting routes where they compete with each other. In addition, the merger likely will result in efficiencies such as cost savings in airport operations, information technology, supply chain economics and fleet optimization that will benefit consumers.
Consumers are also likely to benefit from improved service made possible by combining under single ownership the complementary aspects of the airlines’ networks.

Well... We'll see about that!

Related Stories:
· DOJ Statement on the Merger [Official Site]
· Justice Approves Delta Merger [AP, via Google]

Adventures of Link: Delta-Northwest Deal Still Percolating

pbb — 2008-09-24T17:00:33-05:00

Shareholders of Delta and Northwest will vote tomorrow on whether to merge the two beleaguered carriers. One little problem though: No one has any idea exactly how a tie-up will save the two airlines $2 billion a year. Still, it looks like the vote will be "yes" all around. (Why not, right?)

There's another problem left to contend with, too: Regulatory approval from the US Department of Justice. But while Delta and Northwest wait to hear on that, they can at least toast to a small victory with the FAA, which has approved an operating certificate for the proposed combined carrier.

Delta Uniforms Are So Hot for '09

pbb — 2008-08-22T15:30:15-05:00

Once (and if) Delta and Northwest finally wrap up that merger they've been hyping, all 22,000 flight attendants at the new super-carrier will be wearing the same, Richard Tyler-designed duds.

Northwest cabin crews are probably looking forward to the change, even though it'll mean switching up their wardrobe: The carrier originally promised new uniforms after emerging from bankruptcy last year, but they never materialized.

As for other corporate stuff, Delta is prepping a quick shift in cocktail napkins, in-flight magazines and other logo gear to wipe the word Northwest from the post-merger carrier. If all goes to plan, NWA could be but a memory as soon as next summer.

Related Stories:
· Ahead of Merger, Delta Preps New Look [WSJ]
· Airline Mergers coverage [Jaunted]

[Not a photo of the Tyler uniforms: The Atlantic]

Money-Making Qantas Now Looking for Merger Love

pbb — 2008-08-22T10:45:14-05:00

Even profitable airlines are looking to merge these days! The latest to announce its intentions is Qantas, which raked in $843 million over the past year. Despite the gains, the Aussie airline suspects that fuel prices aren't about to plummet.

CEO Geoff Dixon, who's leaving his position in fewer than 100 days, says:

[Consolidation] is happening now: the Lufthansa-Swissair alliance, the KLM-Air France deal, BA in merger with Iberia, Delta and Northwest have announced talks.
And in the coming years, Australians in general and the authorities in Australia specifically are going to have to realise that, as strong as Qantas is and as big as it is, that it will have to have some form of consolidation.

One carrier we bet the Flying Kangaroo won't be talking with? V Australia, which just got government approval to fly from Sydney to South Africa.

Related Stories:
· No Airline Is an Island [The Australian]
· Qantas Reports Record Profit Despite Woes [AFP, via Google]
· Airline Mergers coverage [Jaunted]

[Photo: SpacePotato]

Virgin Atlantic, BA Squabbling over Heathrow Slots

pbb — 2008-08-18T15:45:12-05:00

Now that British Airways, American Airlines and three other carriers have announced their merger-which-isn't a merger, Virgin Atlantic is making a serious stink. After all, Richard Branson's baby holds just three percent of the slots at Heathrow, while BA and its newest pals control 47 percent of the landing rights at the airport.

This is actually the third time that British has tried to link up with American, but it's the first such attempt since the latest Open Skies provision was enacted, ostensibly to improve competition in the transatlantic market. But Branson says that hasn't yet happened--and won't if a tie-up between BA and AA is approved:

Open Skies has not delivered the greater competition that was promised because Heathrow is full. BA/AA and Iberia would still be unacceptably dominant, with nearly half of all of the slots at Heathrow, leaving competitors powerless to take them on.

For his part, British Airways CEO Willie Walsh says his airline doesn't plan to give up any market share to appease regulators. The UK Times asked him if he'd consider giving up any slots, which can sell for as much as �20 million ($37 million) a pair. His response?

I won't

Airline Mergers: American, British and Iberia Finally Make a Deal

pbb — 2008-08-14T10:35:10-05:00

American Airlines, British Airways, Iberia, Finnair and Royal Jordanian have formally announced their intent to merge, and they've put together a website to hype the tie-up. The spin-tastically named MoreTravelChoices.com even goes so far as to ask passengers to write to the Department of Transportation asking regulators to approve the deal.

The "joint business agreement" the five airlines have signed will have them cooperating on flights between North America and Europe. They also plan to expand their code sharing so you can earn even more increasingly worthless frequent flier miles. Though the agreement is being called a merger, all five carriers will remain legally separate and maintain their own identities--at least for now.

The deal still needs to be approved by the US government, which might be concerned not just with competition but also rules on foreign ownership of airlines. Predictably, Virgin Atlantic is opposed to the deal.

Related Stories:
· MoreTravelChoices.com [Official Site]
· Airline Mergers coverage [Jaunted]