BloggingStocks http://www.bloggingstocks.com BloggingStocks http://www.blogsmithmedia.com/http://www.bloggingstocks.com/media/feedlogo.gif BloggingStocks http://www.bloggingstocks.com en-us Copyright 2012 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/<![CDATA[Delta's (DAL) Anderson: 'No plans for a merger right now']]>http://www.bloggingstocks.com/2007/08/22/deltas-anderson-no-plans-for-a-merger-right-now/http://www.bloggingstocks.com/2007/08/22/deltas-anderson-no-plans-for-a-merger-right-now/http://www.bloggingstocks.com/2007/08/22/deltas-anderson-no-plans-for-a-merger-right-now/#commentsFiled under: , , , , ,

Delta Air Lines (NYSE: DAL) named Richard Anderson, the former head of Northwest Airlines (NYSE: NWA), its new CEO yesterday. The move follows Delta's 19 &frac12; month reorganization under bankruptcy protection.

Seth Tobias of Circle T Partners told Bloomberg, "This could spur the possibility of further consolidation in the industry." The Board's Chairman, Daniel A. Carp, said that Anderson "possesses the right blend of seasoned leadership, strategic skills, international experience and airline knowledge the company needs to navigate the industry's challenges and capitalize on its opportunities."

Bear Stearns agreed with Tobias and Carp this morning. They said Anderson could reshape the U.S. airline industry, claiming that he and the current Northwest CEO, Douglas Steenland, are able to understand each other. Bear Stearns believes a merger between to two would create over $5 billion in incremental equity value.

Despite all the speculation, Anderson said he had no plans for a merger with Northwest on CNBC this morning. He did, however, predict there will be future consolidation within the industry, but failed to name names in the comment.

Anderson told reporters on a conference call that Delta is in a "position of strength" after leaving bankruptcy. The airliner that emerged from bankruptcy only months ago is certainly stronger than it was last year, but the company still faces significant headwinds, including the possibility of a slowdown, growing fuel costs and competition with the growing number of discount airlines. While the idea of Delta acquiring Northwest may sound like a logical move, the thought of taking over an airliner that has a disgruntled union, crew shortages, a horrible reputation and a $3.57 billion market cap is just too much to swallow.

Delta's (DAL) Anderson: 'No plans for a merger right now' originally appeared on BloggingStocks on Wed, 22 Aug 2007 16:15:00 EST. Please see our terms for use of feeds.

Read | Permalink | Email this | Comments]]>acquisitionairlineandersonbear stearnsBearStearnscircle tCircleTdaldaniel carpDanielCarpdeltainthenewsmergernorthwestnwasteenlandtobiasWed, 22 Aug 2007 16:15:00 EST<![CDATA[Northwest cancels flights - just in time for summer]]>http://www.bloggingstocks.com/2007/06/27/northwest-cancels-flights-just-in-time-for-summer/http://www.bloggingstocks.com/2007/06/27/northwest-cancels-flights-just-in-time-for-summer/http://www.bloggingstocks.com/2007/06/27/northwest-cancels-flights-just-in-time-for-summer/#commentsFiled under: , , , , ,

Northwest Airlines Corp (NYSE: NWA) disclosed yesterday that it canceled 10.7% of its flights from Friday to Monday. One of the main reasons for the debacle? The higher-than normal-rate of pilot "sick calls." Northwest said in a statement it was "working to remedy the situation and expects shortly to operate a normal summertime schedule."

I'm sure that made all the delayed travelers so forgiving.

It's a problem that Northwest pilots warned management of in the past. In the concessionary labor contract that was signed last year, the limit on monthly flight hours for pilots jumped from 80 to 90. Wade Blaufuss, a spokesman for the Air Line Pilots Association, told the AP many Northwest pilots are finding themselves flying maximum hours and don't get adequate rest. The Muskegon Chronicle said the airline pilots' union expects this problem to continue throughout the summer.

Northwest emerged from bankruptcy in May with less enthusiasm than when Delta Air Lines (NYSE: DAL) came out earlier last month. Instead, workers have been focused on the $26.6 million in stock awards given to CEO Doug Steenland - while rank-and-file took pay cut after pay cut to keep the company afloat.

Does this mean that pilots are staging a sick-out? Probably, but don't expect them to admit it. It's the summer-time - kids are graduating, people go on vacation and some just need to rest.

Sadly, that's exactly what people who paid for a Northwest flight have been trying to do as well.

Kevin Shult is a writer for TheFlyOnTheWall.com (subscription required).

Northwest cancels flights - just in time for summer originally appeared on BloggingStocks on Wed, 27 Jun 2007 16:45:00 EST. Please see our terms for use of feeds.

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