5/14/2008 at 4:05 PM
Tags: Airline Mergers, Delta, NWA, American Airlines, Continental, United, US Airways, Southwest Airlines (all tags)
Forgive us if we haven't been breathlessly reporting all the latest merger gossip: All these rumors and anonymous sources have us more than skeptical. But since everyone seems to be involved in something these days, here's a cheat sheet for all the merger mania swirling in the industry:
Delta and Northwest: These two are getting together, pending approval from the US government. You can keep up on both carrier's plans at the pompously named newglobalairline.com. Oh, and before you believe the hype that nothing will change when they get together, Northwest CEO Doug Steenland just announced that, yes, they probably will be cutting some service.
MORE...
by pbb
4/28/2008 at 10:30 AM
Tags: Continental, Websites, Travel Websites, Airline Mergers (all tags)
Well. Two days after we call out Continental for throwing together a pointless website, the carrier releases a pretty definitive statement updating the world on its merger plans. Here's what the airline had to say:
You must be nuts to think we're hitching ourselves to a dumpy, cash-hemorraghing legacy carrier who's only hope for survival is us.
Wait. No. The real statement was much more measured, and despite its firm dismissal of a merger, Continental didn't say it would never happen. Here's the real word from CEO Larry Kellner and President Jeff Smisek:
In the current industry environment, the best course for Continental is to not merge with another airline at this time...[We] very carefully considered all the risks and benefits of a merger with another airline, and determined that the risks of a merger at this time outweigh the potential rewards, as compared to Continental's prospects on a standalone basis.
Nice that the carrier is making use of the new website, but couldn't this just go out as a regular press release? And will Continental ever set up RSS feeds on the merger page, or do we just have to keep going back and refreshing the page for further updates?
Related Stories:
· Continental Abandons Merger Talks [NYT]
· So Far, Continental's New Merger Website Is Pointless [Jaunted]
· Airline Mergers coverage [Jaunted]
[Photo: Vox Efx]
by pbb
4/25/2008 at 3:15 PM
Tags: Continental, Websites, Travel Websites, Airline Mergers, Travel Marketing (all tags)
Was Continental in the minority, thinking the new American Airlines blog was any sort of decent? Must have, cause the carrier has fired up its own stand-alone mouthpiece to spout opinions about airline mergers. You'll find it at co-industryconsolidation.com.
Thing is--and this is right outta the AA playbook--the new site doesn't actually tell us anything worth hearing. Here's a snippet of the "helpful" info Continental shares:
As we've said repeatedly for more than a year and a half, our preference has been to remain independent as long as the competitive landscape remained the same. However, the landscape is changing. We will review our strategic alternatives and make sure we remain a strong long-term competitor.
Southwest should be selling these legacy carriers PR classes.
Related Stories:
· Continental Rolls Out Merger Website [USAT]
· New AA Blog Could Use Some Work [Jaunted]
by pbb
4/15/2008 at 9:24 AM
Tags: Airline Mergers, Delta, NWA, James Oberstar (all tags)
Before you start planning your next trip with what could be the country's largest carrier, better wait for the deal to be approved. But wait, didn't Delta and NWA already announce a merger? They did, but Northwest's pilots are resisting a deal.
You probably won't notice it on the new marketing website created for the airline, but a mention of the sticking point is there:
With respect to Northwest pilots, Delta has committed to use its best efforts to reach a combined Delta-Northwest pilot agreement, including resolution of pilot seniority integration, prior to the closing of the merger.
In other words: Hang on one sec, while we beat these folks into submission. And we can think of at least one other person who won't like this news: Rep. James Oberstar. The congressman from Minnesota declared his anti-merger stance the last time Delta and Northwest were flirting. Can't imagine he'll enjoy the idea this time around, especially since Delta headquarters will be in Atlanta not Minneapolis.
As for us? We'll be standing by to welcome our new global airline overlords until they can, you know, actually get some pilots on board.
Related Stories:
· NewGlobalAirline.com [Official Site]
· Airline Mergers coverage [Jaunted]
[Photo: Cubbie_n_Vegas]
by pbb
4/10/2008 at 10:09 AM
Tags: Silverjet, Airline Mergers, All Business Class Carriers (all tags)
Someone--and we don't yet know who--just offered to take over Silverjet, one of a couple biz-class-only transatlantic airlines. Though its been flying since January 2007, the airline has yet to make any money.
That has us wondering who might've offered to buy it. British Airways is starting its own schmancy transatlantic service, and the deep-pocketed Virgin Atlantic doesn't need to take over a rival--it could just expand. John Weikle has more time on his hands, but Silverjet seems a bit too ritzy--and international--for his tastes.
Despite the shutdowns of niche long-haul carriers like Maxjet and Oasis, analysts are split on whether Silverjet has a chance at turning a profit anytime soon. The airline did carry a record number of passengers in March.
Related Stories:
· Silverjet Says It's in Takeover Talks [Bloomberg]
· More Coachless Flights Crossing the Atlantic [Jaunted]
· Silverjet Expanding Fleet, Routes [Jaunted]
[Photo: g4sp]
by pbb
3/18/2008 at 5:00 PM
Tags: Airline Mergers, Delta, NWA (all tags)
Well, the superairline is as good as dead. Pilots at Delta and Northwest couldn't hash out a compromise over seniority, a major sticking point on a merger.
While the airlines could potentially get together without the pilots on board, Delta doesn't think that's a good idea. And so for now, the two legacy carriers will fly solo into the brave new world of $110-a-barrel jet fuel. Bring on the surcharges!
Related Stories:
· Letter from Delta Pilots' Union Chairman on Merger Talks [Official Site]
· Delta Pilots Union Unable to Reach Seniority Deal [AJC]
· Delta, Northwest Pilots Unable to Reach Deal [Chicago Tribune]
· Pilots' Talks Apparently Fail in a Northwest-Delta Hookup [NYT]
· Airline Mergers coverage [Jaunted]
[Photo: daiji]
by pbb
3/10/2008 at 1:26 PM
Tags: Airline Mergers, Delta, NWA (all tags)
The Delta-Northwest merger hasn't flatlined yet, though pilots are still wrapped up in a weeks-long argument over seniority. Even if execs wanted to walk away from the deal now, it appears doing so could be fatal for the carriers. Now that oil has surged past $100-a-barrel, neither airline seems prepared to go it alone:
Delta CEO Richard Anderson, shortly after crude oil reached $103 a barrel, told his employees a week ago that Delta's 2008 business plan was built on $90-a-barrel oil.
Both companies recovered from bankruptcy last year after serious reorganizations, says the Minneapolis Star Tribune. But rising oil prices and the increasing popularity of foreign carriers and domestic LCCs have challenged those already-dated business models. A successful merger may be their only hope.
Related Stories:
· Merger a route to survival? [Star Tribune]
· Airline Mergers coverage [Jaunted]
[Photo: Drewski2112]
by benh
3/03/2008 at 9:40 AM
Tags: Delta, NWA, Airline Mergers (all tags)
With pilots from both Delta and Northwest still wrestling over seniority, hopes for a successful merger are circling the drain.
The Financial Times just reported that if no announcement was made within two weeks, the deal should be "assumed dead."
At the center of the debate is pilot seniority. Delta has a relatively young pilot pool that currently enjoys high seniority, and they don't see much reason to give it up.
Perhaps the two companies should have seen this coming. The Houston Chronicle says that two years after America West and US Airways combined, pilots are still fighting over who's on top -- for good reason:
To airline pilots, seniority is just as important as pay. Their place in the pecking order determines what kind of planes they can fly, what routes they're assigned, whether they can be home for the holidays.
So potentially fewer cheap seats and disgruntled pilots? Maybe it's a good thing we're still waiting on a deal.
Related Stories:
· Delta/Northwest Merger Put on Life Support [FT]
· Pilot Seniority Big Issue [Houston Chron]
· Airline Mergers coverage [Jaunted]
[Photo: daiji]
by benh
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