Airline Finance News - North America

AirGuide Business, April 21, 2008

Continental Airlines, United Airlines

Union representatives of pilots from Continental Airlines and United Airlines fired a warning shot to the carriers' management as rumours of more mergers circulated following the Delta-Northwest deal. A statement from the Air Line Pilots Association (Alpa) gave stark warning regarding where members of both airlines stand on the subject. If a merger benefits airline executives, Wall Street financial groups and legal firms at the expense of pilots and the flying public, we will use all lawful means necessary to ensure the transaction is unsuccessful. Apr 17, 2008

Delta Air Lines, Northwest Airlines

Even the proposed merger of Delta Air Lines and Northwest Airlines was greeted with skepticism. Consumers and travel agents questioned if the merger would result in cost and service benefits or compound existing problems. The move will be subject to intense scrutiny by Congress and the Departments of Transportation and Justice. Apr 19, 2008

Delta Air Lines, Northwest Airlines

The merger between Delta Air Lines and Northwest Airlines could have a severe impact on airports' credit were the potential Delta-Northwest merger to be followed by further consolidations in the industry, Moody's said. Earlier this week, Delta announced it would buy Northwest for more than USD$3 billion in a deal that would create the world's largest airline. Regulatory approval is pending. Apr 19, 2008

Delta Air Lines, Northwest Airlines

The proposed Delta Air Lines and Northwest Airlines merger set off a chain reaction among other airlines in the U.S. and internationally, who scrambled to evaluate the impact of a Delta/Northwest merger. Speculation that a link between United and Continental was possible was widespread, while a link between United and US Airways was another possibility mentioned. Continental would review its strategic options. Continental has an alliance with Northwest, Delta and Sky Team. Richard Anderson and Doug Steeland, the CEOis of Delta and Northwest respectively, argue that the merger will benefit employees, communities and consumers. They said that collectively the airline industry has lost $29 billion since 2001. iConsolidation in the industry may be the only alternative to another wholesale round of turmoil and dislocation,i they wrote in a recent Wall Street Journal article. Apr 19, 2008

Delta Air Lines, Northwest Airlines

Delta Air Lines has assembled a group of lobbyists to support its plan to merge with Northwest Airlines, according to media reports. The airline will reportedly launch the lobbying campaign next week in Washington. Former Sens. Trent Lott, R-Miss., and John Breaux, D-La., are among the lobbyists said to be hired by the airline. Apr 18, 2008

Delta Air Lines, Northwest Airlines

US airline executives this week expressed alarm at the consistently high price of fuel, warning that no relief is in sight. Delta Air Lines President said that proposed merger with Northwest Airlines was driven in part by soaring energy costs. American Airlines Executive VP-Finance and Planning and CFO Tom Horton said that fuel costs mean "steep climbing" for US carriers for the remainder of 2008. American is projecting that jet fuel will average $2.98 per gal. in the second quarter and $3.01 for the full year. American Air has hedged 30% of its anticipated fuel supply for the remainder of the year at $2.41 per gal. Apr 18, 2008