Company Watch - Delta Air Lines.

Nov 20, 2006

Apple Computers announced this week that it is partnering with Continental Airlines, Delta Air Lines, Emirates, KLM, United Airlines and Air France to enable passengers traveling with iPods to draw electrical power for the devices from onboard systems and permit iPod video content to be transmitted to seatback screens for playback. Apple said the service will be available by the middle of next year, but AF yesterday refuted the claim that connectivity soon will be installed on its aircraft. "Apple is a partner of Air France, but it is far too early to talk about a project such as this," the carrier said in a statement. Nov 16, 2006

Comair's fate in a merged Delta and US Airways also is a question mark. In their report, Raymond James analysts said Comair's business could be "substantially curtailed and possibly shut down." The carrier's flight attendants recently ratified a concessionary deal, but progress with gaining concessions from pilots is slow. Nov 17, 2006

Comair flight attendants, represented by the International Brotherhood of Teamsters, ratified a four-year agreement reached last month that includes a pay cut (7.5%, according to the Associated Press), increases job security and caps health insurance payments at the bankrupt Regional subsidiary of Delta Air Lines. "With this vote our members have shown they are ready to move forward," said Connie Slayback, a Comair flight attendant who is president of Teamsters Local 513. "This agreement maintains industry leading wages and helps Comair begin the process of rebuilding the company." The airline still is in negotiations with the Air Line Pilots Assn. Nov 16, 2006

Comair attendants finish voting today. Comair flight attendants today will finish voting on an agreement that will cut pay and benefits by $7.9 million. Results will be announced later today or on Wednesday. Comair, a unit of Delta Air Lines, says it needs the savings to emerge from bankruptcy protection. Nov 14, 2006

Delta Air Lines Seeks Creditor Help To Fend Off US Air Bid - Report. Delta is trying to rally support from creditors to help fend off a takeover bid by US Airways, according to a newspaper report on Friday. Nov 17, 2006

Carriers improve safety with airbags. Some carriers are installing seatbelts equipped with airbags that explode outward during a sudden impact. The airbags will help carriers comply with new FAA requirements that carriers equip their cabins with more crash-resistant seats by 2009. In early 2008, Delta Air Lines will become the first U.S. carrier to install air bags. Nov 16, 2006

Delta Air Lines on track to turn profit in 2007, CFO says. Delta hopes to be "solidly profitable year-round" in 2007, Chief Financial Officer Ed Bastian says. The airline lost $46 million in the third quarter. Bastian says Delta will also lose money in the fourth quarter, but only a fraction of what it lost a year earlier. Nov 16, 2006

Delta Air Lines was scheduled to operate its first New York JFK-London Gatwick flight at 7:05 p.m. last night. Delta purchased the route right from United Airlines over the summer and now serves 21 transatlantic destinations from JFK. It will add a second daily flight on April 1. Nov 16, 2006

Delta Air Lines announced it will launch weekly Atlanta-Tobago Crown Point service on Feb. 17 aboard a 737-800. In addition, it will expand its codeshare relationship with KLM from Dec. 1 by placing its code on KLM flights from Amsterdam to and from Bremen, Aberdeen, Luxembourg, Riga, Bergen, Stavanger and Newcastle. Nov 16, 2006

Delta Air Lines's bankruptcy bills climb to nearly $100M. Lawyers and consultants working on Delta' bankruptcy reorganization have requested an additional $24.3 million to cover fees and expenses. So far, they have billed a total of nearly $100 million, including the latest request. Delta hopes to exit bankruptcy by the middle of 2007. Nov 13, 2006

Delta rallies support to fend off US Airways bid. Delta Air Lines has held a series of conference calls with creditors to evaluate US Airways' bid, according to media reports. Delta wants creditors to back its restructuring plan. US Airways, which launched its $8.76 billion bid Wednesday, is still trying to arrange a meeting with Delta's creditors committee. A meeting may be held as early as next week, and Delta representatives are expected to attend. Nov 17, 2006

Small cities struggle to attract, keep airline service. No matter how US Airways' bid for Delta Air Lines plays out, large cities will continue to have plenty of air service, the Wall Street Journal's Scott McCartney writes. Smaller cities may continue to face limited service and high fares, he writes. Nov 17, 2006

US Airways and Delta regional, Shuttle operations up in air. US Airways' bid to acquire bankrupt Delta Air Lines raises questions about the future of the regional airlines that have service agreements with the mainline carriers and compete on a number of routes. Nov 17, 2006

US Airways' proposed merger with Delta casts a shadow on 50 incremental 76 planes Delta has asked regional carriers to bid for, analysts at Raymond James noted in a recent research report, adding US Airways might opt not to pursue that business. Such a move, they pointed out, could put near-term growth of SkyWest, Republic and Mesa in question. Nov 17, 2006

Analysts estimate odds of US Airways-Delta deal. One Wall Street analyst puts the odds of US Airways and Delta Air Lines combining as high as 80%. Other analysts say United Airlines might succeed in a bid for Delta if it tops the more than $8 billion offered by US Airways. Nov 17, 2006

US Airways takeover of Delta faces big hurdles despite potential value. The US airline industry is taking stock of US Airways Group's $8 billion takeover bid for bankrupt Delta Air Lines, a deal that would reshape the landscape of the world's largest commercial aviation market but must overcome significant hurdles before coming to fruition. Nov 17, 2006

Bid for Delta Air Lines may set off wave of mergers, observers say. US Airways' hostile bid for Delta could trigger a wave of merger activity in the airline industry. Some observers say consolidation could help the industry speed its financial recovery. Delta CEO Gerald Grinstein repeated Wednesday that Delta plans to emerge from bankruptcy as an independent airline. US Airways CEO Doug Parker said a combination of the two airlines could create $1.65 billion in annual cost savings. The deal faces several obstacles, including Delta management, antitrust issues, and a possible competing bid from another carrier or investor group. Nov 16, 2006

Carriers would divest overlapping assets if bid succeeds, Parker says: US Airways and Delta Air Lines would need to divest assets in the Northeast if US Airways' hostile bid succeeds, US Airways CEO Doug Parker says. American Airlines, Northwest Airlines and United Airlines may want gates that would open up in Boston, New York and Washington. Analysts say the combined carrier would need to sell some assets to address regulators' antitrust concerns. Nov 16, 2006

Proposed combination has advantages, disadvantages for fliers. The combination of Delta Air Lines and US Airways would create benefits as well as risks for consumers, observers say. US Airways' frequent fliers would have access to Delta's extensive international operations. However, the combined carriers could reduce service in cities where they overlap, possibly resulting in higher fares on some routes. Nov 16, 2006

US Airways makes blockbuster bid for Delta. US Airways Group continued its one-airline assault on the US airline market structure with an $8 billion bid to merge with Delta Air Lines as part of that carrier's bankruptcy restructuring. Nov 16, 2006

Unions wary of proposed merger: While US Airways, now bidding to take over Delta, has won high marks from investors for its efforts to integrate with America West, union reaction has been less than enthusiastic. US Airways CEO Doug Parker promises the airline would spend $90 million to equalize pay among a combined airline's workers. Union leaders say existing pay problems should be fixed before any merger with Delta.

Nov 16, 2006

US Airways seeks another transformation in bid for Delta. After two bankruptcy filings and a merger with America West Airlines, US Airways now hopes to become the world's largest airline. The company on Wednesday launched a hostile bid for Delta Air Lines. Some analysts say labor questions and Delta's size could make a US Airways-Delta combination complicated. Nov 16, 2006

US Airways' bid to merge with Delta prompted Standard & Poor's to place the company on CreditWatch, saying that if US Airways successfully merges with Delta, ratings could be raised modestly. But if a competing Delta bid emerges that forces US Airways to raise its offer, ratings would fall. Nov 15, 2006

US Airways' success in acquiring Delta isn't assured. While Parker highlighted to analysts that US Airways management believes no regulatory issues exist that cannot be resolved, analysts at Bank of America pointed out antitrust concerns are likely to focus on the proximity of Delta and US Airways' Atlanta and Charlotte hubs. Nov 15, 2006

Low-Fare Rivals Key To US Airways-Delta Deal. The emergence of low-fare competitors could be a key factor in getting US antitrust authorities to approve US Airways' proposed USD$8 billion purchase of bankrupt rival Delta Air Lines, experts said on Wednesday. Nov 15, 2006

US Airways say the merger would drive a consolidation of wide-body aircraft. Delta operates 104 767-300/400 aircraft and eight 777s. The US Airways fleet includes 10 767-200s and nine A330-300s. The fleet plan does involve a reduction in 50-seat regional jets. Officials avoided specifics in any aircraft category. Nov 19, 2006

Editor: Aram Gesar, eMail: [e-mail]

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Nov 13, 2006