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US Airways cancels Delta acquisition

monsoon

By monsoon
in Charlotte

Which Southern Hub will they Keep?  

93 members have voted

  1. 1. Which Southern Hub will they Keep?

    • Atlanta Hartsfield
      51
    • Charlotte Douglas
      9
    • Both Hubs will remain
      33

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monsoon Gigalopolis

monsoon

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That article did not make much sense, except for maybe Boeing. USAir is offering these people 50 cents on the dollar for what that are owed by Delta and almost a guarantee of business with the larger Airline. What can Delta offer them? 3 to 4 cents on the dollar? These companies have to answer to the stockholders who will want to know why they passed on a deal like that.

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SmellyCat Burg

SmellyCat

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That article did not make much sense, except for maybe Boeing. USAir is offering these people 50 cents on the dollar for what that are owed by Delta and almost a guarantee of business with the larger Airline. What can Delta offer them? 3 to 4 cents on the dollar? These companies have to answer to the stockholders who will want to know why they passed on a deal like that.
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SmellyCat Burg

SmellyCat

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Yes there is. Boeing, Coke, BofA, Suntrust, the City of Albaturkey, etc all have stockholders or taxpayers who don't want to be left with unpaid bills by Delta. These are the "creditors" they are talking about. If USAir offers these companies more money than Delta does, then the CEO of these companies are obligated to consider this offer, and explain to their shareholders or the taxpayers why they didn't take it since not doing so would cost these companies/cities money.
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suburban george3 Town

suburban george3

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While waiting for an almost "non-existent" shuttle bus to Long Term 1 at the Charlotte airport last night, I had quite a lengthy conversation with a couple of JetBlue pilots about this merger. They seem to think, along with most of the posters here, that if this goes thru the hub in Charlotte will be history. Quite a bit of anxiety in the aviation industry now as more mergers are possible. Hopefully another airline would come in and fill the void.... only time will tell.

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nowensone Burg

nowensone

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This from Daniel Golden, the spokeperson for Delta's unsecured creditors:

We have great respect for Delta's management. We think they've done a very good job in Chapter 11. But at the end of the day we're going to make a determination about what works best for the estate and the unsecured creditors.
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uptownliving Town

uptownliving

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For reference Philly has 440 daily USAirways flights and Cincinatti has 343 daily Delta Flights. So my guess is that Charlotte would be somewhere around 400 daily "Delta" flights. Add in all the other airlines and Charlotte would have around 470 daily flights....140 less than it does today.

With the downsizing of USAirways in CLT, Southwest would probably be tempted to finally start flying here. That would drive our fares here down even further and the O&D up.

The future will be interesting for sure.

Something else to note on the international front. If the new Delta goes with the Sky Team alliance then we would probably gain a Paris flight since that is one of their main European hubs.

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monsoon Gigalopolis

monsoon

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Though I am citing a source that rarely gets into details on the matter, WSOCTV tonight said the Mayor got a promise from USAir that CLT would remain a "hub" after the merger with Delta if it happens but it would be reduced to something smaller than Philly and would be larger than Cincinnati in this move.

What is missing from this is how much will CLT and Cinci will actually be reduced by this merger.

From looking at a map of what the merged airline would look like, it is clear that USAir is looking to save the Delta Hub in Atlanta, and the USAir Hub in Philly. These will be the primary mainline hubs for the new Delta on the east coast. CLT and Cinci, will become secondary airports in this new system on the East coast.

I get the impression they will call CLT and Cinci hubs but the end result will be a far cry from what is in CLT now. That much is clear. The Mayor will support it because he really has no choice and as long as the semantics are there he has protected his position in this matter.

After they reduce the number of flights in CLT, the next thing that will happen is that the passenger cost for someone to fly into CLT will go up, maybe dramatically. This will be used as the justification to eventually close down the hub operations in Charlotte. This part is based on what has happened in the past with other airports. The end result is that the new Delta might fly 150-200 or so flights out of CLT.

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