Both airlines stocks shot up earlier today as investors seemingly thought this is a good move for both airlines.
Will this merger actually happen? I doubt it, and I hope not!
1st of all USAirways has a terrible mileage program in which if you dont have activity every 18 months you lose all of your miles. I personally have zero USAirways miles, but i do have Delta miles that I wouldnt want USAir to touch with a 10-foot pole.
2nd-Since when does the #7 company in the industry take over the #3? USAirways still hasn’t even fully integrated America West from the last merger…
If by some crazy means is does go through (Delta has said they want to remain stand-alone) I wonder which hubs will be cut, which name they will keep, and which alliance they will stick to…
The last USAirways merger saw Charlotte, Philadelphia, Las Vegas, and Phoenix survive, with just Pittsburgh being cut.
Delta operates a mega-hub in Atlanta and smaller hubs in Cincinnati and Salt Lake City.
I would imagine that Charlotte, Cincinnati, and Salt Lake City would have to lose their hub status in such a merger.
My other guesses are that they would keep the Delta name, which has a far better reputation than USeless Airways…
USAirways joined the Star Alliance just a couple years ago, and Delta is the founding member of Skyteam, so most probably they would stick with Skyteam…
Anyway this is all just speculation…
At the end of the day I highly doubt that this merger will happen. However I am sure that within a couple years we will see major consolidation in the industry…
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5 Comments On "USAirways Offers $8B For Delta…"
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b’h
check out the merger-presentation
http://www.usairways.com/common/resources/_downloads/aboutus/pressroom/investor_presentation.pdf
the proposal is as follow’s
“USAIR+DELTA=THE NEW DELTA”
ALL USAIR-MILES WILL BE CONVERTED/TRANSFERD TO DELTA-SKY/MILES AS WELL AS ANY STATUS-GOLD/PLATNUM ETC,
THIS MAY BE A GOOD TIME TO TRY AND GET A USAIR STATUS/MATCH…
AS WELL AS RACKING UP WITH SOME MBNA/BOA-USAIR-CC-BONUS-POINTS…
US Airways® Visa® Signature®
0% Introductory APR on purchases, balance transfers, and cash advance checks for your first 6 billing cyclesâ€
25,000 bonus Dividend Miles® after your first net retail purchase
Preferred Check-In and Preferred Boarding
You should have seen the Airtran stock AAI went up 15-20% yesterday after the news of the merger settled in
Hear, Hear! I hope delta sticks it out. Oh, and by the way… USeless is right…
Slight correction. America West bought US Airways. They just kept the name.
Correction UsAirways miles expire 36 months after last activaty not 18 as stated