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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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I believe that even our local Rep. Sue Myrick (and former Mayor) has said it is OK since the combined airline will only control 18% of the total market. I think if the creditors accept this deal it's not going to have much problem with the feds. For one thing, it gets rid of another sick airline which is something they don't want to have to deal with.

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kickazzz2000 Hamlet

kickazzz2000

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That sounds like he isn't keeping up with the news. Many people attribute the lack of retail in downtown Charlotte to the fact that people like him that keep putting their stores in the suburbs. Crate & Barrel would have been a nice addition to downtown Charlotte but instead its promoting more sprawl by following the tried and true. Like all CEOs including the one at USAir, they are going to do what is best for their business, not the cities they are located in.
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cooperdawg Whistle-Stop

cooperdawg

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I'll be the first to admit I know next to nothing with how antitrust and bankruptcy courts work, but my only question is this. Has anyone in power from Delta been in favor of this merger to the point of acting on, or by being under bankruptcy protection, are they not in a position to make that decision in a hostile takeover? I don't know the logistics of how all of this works, just looking for the "Antitrust/Bankruptcy for Dummies" answer. Thanks in advance.

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Miesian Corners City

Miesian Corners

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^No real easy answer to your question, CD. Since the bid is hostile, US is more than likely taking the proposal directly to DL's creditors. They are the ones who ultimately decide the company's fate. If the creditors think they can get a better deal with DL's current management and are willing to hold on long-term, they can reject the US offer and stay the course with DL. If they want to cash out now and take what they can get with no more risk, they'll say yes to US.

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Ryepow Whistle-Stop

Ryepow

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At first sight and on paper CLT looks to be in big trouble if this deal goes though thanks to ATL. But just like the deal itself that makes no sense there could be a silver lining for CLT that may work out to some extent in CLT's favor. Not surprising the DOJ will most likely conclude having both the CLT and ATL as major hubs will be a monopoly. Unlike what happened in PIT, US Airways is not in bankruptcy this time and can not shed a concourse of long term leases of gates very easily and quickly. Delta on the other hand is in bankruptcy and can easily reject real estate and airplane leases. Perhaps the DOJ will ask the combined airline to free up enough space in ATL for another airline.

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Ryepow Whistle-Stop

Ryepow

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If this theory did come true, my first guess would more available gates for Airtran to expand and perhaps a unwanted but open door invitation for someone like United to make ATL a focus city since they are very weak in the the Southeast. If this happens, US would most certainly lose most if not all it's Caribbean non-stops to ATL but might handle more domestic feed for domestic USA bound passengers. I think it would be smart to keep the London and Frankfurt flights as well in CLT, they do well and it's better not to put all you eggs in one basket at ATL. They could space the times to coordinate with each other. I can't imagine seeing much more to Europe, maybe one additional city that is not currently offered, but most international would be out of ATL, PHL, and JFK.

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uptownliving Town

uptownliving

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I have to give credit to the people that put out USAirways employee newsletter. They arn't afraid to put the negative stuff in there and address it. One of the things in today's newsletter was a quote from a Delta Employee

"As much as all of us have been through, I just wanted to say that I will burn in hell before I will work for US Airways. If you think that trying to integrate Delta and US Airways is possible, you have no idea of the fight that you're going to have if you try."
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monsoon Gigalopolis

monsoon

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I guess people can take from that what they want, but the CEO did not answer the question that was asked about the Hub and instead said that was "the plan". If he got up and said that as part of this merger, the Charlotte Hub would be eliminated, people would come out of the woodwork to stop this deal from happening.

The bottom line is it simply is impossible to have two large 600+ planes/day hubs sitting right next to each other for the same airline if they have any hope of saving money. One of them is going to be cut back a lot, and its my guess the people in Tempe are going to cut CLT.

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Lady Celeste Burg

Lady Celeste

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I have read the post on both the Atlanta forum (not many) and the Charlotte forum. I have tried to keep my ear to the ground for any new information. At first I was like..."well, what can you do?" Now I am not so sure. I fear this merger for two reason.

One...from an airline analyst who requested anonymity:

If successful, US Airways would combine two airlines whose routes overlap 36 percent
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German-Mexican-Dude Crossroads

German-Mexican-Dude

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http://yahoo.brand.edgar-online.com/EFX_dl...97K2EXV99W1_HTM

http://www.usair.com/common/resources/_dow...stic_routes.pdf

As you can see on the NEW IF WE combined route map, KCLT is still a main hub. Unlike LAS along with La Guardia, and JFK,DC which proves CLT will remain.

PIT will also become a mainhub.PS~ SLC will stay.

US is trying to Expand internationally. Delta has 100+767"s, 9 777's, and a ton of 757{trans atlantic/pacific kind}

US has 10 A330s, a few 767's.

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German-Mexican-Dude Crossroads

German-Mexican-Dude

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The airline industry is hard.Airlines competeing like crazy. you have 7 US from CLT to birmingham, and 7 Delta to ATL. Niether profitable. Combined there might be 2/3 flights each BOTH profitable with larger aircraft..If you cut back operations there will be gate space.This guy has been talking to US.Why build up Clt?Because CLT is profitable.The 10% reduction will come from CRJ 200's mainly.

I'm not sure I'd trust this "analyst". On point A, Delta has large ops at LAX, SFO and SLC. Salt Lake might be scaled back, but the airline would never let go of the gate space it has at LAX and SFO. On point B, again, why would US Airways build up CLT instead of ATL? The ATL market is far larger than CLT with a much bigger O/D share. Point C, downsized...maybe. Point D, PIT is no longer a US hub, its a "focus city" with no connections. Where has this guy been?
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