US Airways Proposes Hostile Takeover of Delta

[Cybear]

I know this is not the "my skyscraper's taller than your skyscraper" stuff of other more erudite sites, but

if this issue cannot create some serious discussion, perhaps nothing will:

In cities where US Airways has hubs, particularly Charlotte, the UP chatter is all about this topic. Conventional wisdom has it that with McCarran and Sky Harbor as existing US Airways hubs, there would be little need to keep a third in such close proximity to the other two if the DOJ approves this merger.

If that happens, this would have a profound impact upon our local economic future.

Any Comments? Questions? Concerns? Interest?

[tombarnes]

I have tried to raise this point in other threads, only to be largely ignored in the general hysteria on this subject. I find it extremely unlikely that the Justice Department will allow this proposed merger to go through- for exactly the same reasons they blocked the United-USAirways merger a few years ago. Something may indeed happen with Delta, but I doubt this proposal will go through. It's simply a bad idea all around- and especially so for travelers.

[Miesian Corners]

Tom, I hope you're right. But things are different now than they were when United tried to buy USAirways. From what I've read, the Justice Department will probably have no issue with it. What may kill it is that Delta investors have confidence in its reorg plan and think it will be worthwhile to stay in for the long-haul rather than taking US's offer of $0.40 on the dollar.

[Cybear]

Tom, I hope you're right. But things are different now than they were when United tried to buy USAirways. From what I've read, the Justice Department will probably have no issue with it. What may kill it is that Delta investors have confidence in its reorg plan and think it will be worthwhile to stay in for the long-haul rather than taking US's offer of $0.40 on the dollar.

[MJLO]

How many passengers a year does SLC's airport handle? I'm not sure how feasable a Delta - USAirways merger would be with the Gov't. But I know that Salt Lake is not the only city that would be worried. Charlotte's status as a hub city would be threatened because of how close it is to Atlanta, Deltas fortress hub. But also realize that some conspiracy theorists are thinking that this may all be a ploy to actually aquire NWA. In that case Minne and Memphis residents would be more worried about losing hub status. I can't imagine it would have to much an impact on the overall economy of the city tho. Might just make travel slightly more expensive.