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	<title>Comments on: A Bon-Bon for Richard: Why Delta Should Buy Alaska ASAP . . .</title>
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		<title>By: Joseph</title>
		<link>http://crankyflier.com/2009/06/25/a-bon-bon-for-richard-why-delta-should-buy-alaska-asap/comment-page-1/#comment-81247</link>
		<dc:creator>Joseph</dc:creator>
		<pubDate>Sat, 24 Oct 2009 21:12:10 +0000</pubDate>
		<guid isPermaLink="false">http://crankyflier.com/?p=2984#comment-81247</guid>
		<description>Let me school every body since i am a Seattle Native.  Alaska back when they had MD-80s used to serve parts as far away as Russia but that didn&#039;t pan out for them i don&#039;t see many people wanting to sit on and MD80 or 737 for mor than 4 hours i sure the hell don&#039;t it only makes sense that the asain routes have increased traffic on them i used to work for both United and Northwest out of seattle and these flights have always been oversold I do believe the market is here as long as they don&#039;t over do it.</description>
		<content:encoded><![CDATA[<p>Let me school every body since i am a Seattle Native.  Alaska back when they had MD-80s used to serve parts as far away as Russia but that didn&#8217;t pan out for them i don&#8217;t see many people wanting to sit on and MD80 or 737 for mor than 4 hours i sure the hell don&#8217;t it only makes sense that the asain routes have increased traffic on them i used to work for both United and Northwest out of seattle and these flights have always been oversold I do believe the market is here as long as they don&#8217;t over do it.</p>
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		<title>By: Jeff Mulford</title>
		<link>http://crankyflier.com/2009/06/25/a-bon-bon-for-richard-why-delta-should-buy-alaska-asap/comment-page-1/#comment-75471</link>
		<dc:creator>Jeff Mulford</dc:creator>
		<pubDate>Mon, 29 Jun 2009 08:30:14 +0000</pubDate>
		<guid isPermaLink="false">http://crankyflier.com/?p=2984#comment-75471</guid>
		<description>Delta already wants voluntary retirement from DL/NW employees. And, with the new marketing alliance between DL and Alaska, what sense does a merger really make? It seems like Delta can take great advantage of Alaska from its current marketing agreement without involving itself in more costly merger activity.

BTW...has anyone ever considered the possibility of AS acquiring AirTran?</description>
		<content:encoded><![CDATA[<p>Delta already wants voluntary retirement from DL/NW employees. And, with the new marketing alliance between DL and Alaska, what sense does a merger really make? It seems like Delta can take great advantage of Alaska from its current marketing agreement without involving itself in more costly merger activity.</p>
<p>BTW&#8230;has anyone ever considered the possibility of AS acquiring AirTran?</p>
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		<title>By: Eric</title>
		<link>http://crankyflier.com/2009/06/25/a-bon-bon-for-richard-why-delta-should-buy-alaska-asap/comment-page-1/#comment-75421</link>
		<dc:creator>Eric</dc:creator>
		<pubDate>Sat, 27 Jun 2009 20:01:14 +0000</pubDate>
		<guid isPermaLink="false">http://crankyflier.com/?p=2984#comment-75421</guid>
		<description>LAX seems problematic for a few reasons; it is a mature market, so any foothold  DL can gain will be at the expense of other carriers...which leads to problem 2, it is VERY competitive.  LAX is saturated with every Asian flag carrier that has the metal to reach it, and, lets be honest...their product is superior to anything a US network carrier has to offer. Finally, LAX has a geographic disadvantage...much like SEA, by being in the &#039;corner&#039; of the map.  Opportunity for traffic flow-thru and  feed are limited vs. say...SFO.

I think the 2 wildcards here are what happens to the AA/BA/IB situation, as this could redefine the alliance model.  If it moves forward intact, networks carriers really wont give a rats a&amp;&amp; who&#039;s metal (within the alliance) is flying what...which makes the &#039;need&#039; for a coastal anchor moot.  The second  wild card is when the 787 &amp; A350 eventually come online...this would theatrically make a number of secondary markets to Asia do-able from a financial standpoint.</description>
		<content:encoded><![CDATA[<p>LAX seems problematic for a few reasons; it is a mature market, so any foothold  DL can gain will be at the expense of other carriers&#8230;which leads to problem 2, it is VERY competitive.  LAX is saturated with every Asian flag carrier that has the metal to reach it, and, lets be honest&#8230;their product is superior to anything a US network carrier has to offer. Finally, LAX has a geographic disadvantage&#8230;much like SEA, by being in the &#8216;corner&#8217; of the map.  Opportunity for traffic flow-thru and  feed are limited vs. say&#8230;SFO.</p>
<p>I think the 2 wildcards here are what happens to the AA/BA/IB situation, as this could redefine the alliance model.  If it moves forward intact, networks carriers really wont give a rats a&amp;&amp; who&#8217;s metal (within the alliance) is flying what&#8230;which makes the &#8216;need&#8217; for a coastal anchor moot.  The second  wild card is when the 787 &amp; A350 eventually come online&#8230;this would theatrically make a number of secondary markets to Asia do-able from a financial standpoint.</p>
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		<title>By: Widgetman</title>
		<link>http://crankyflier.com/2009/06/25/a-bon-bon-for-richard-why-delta-should-buy-alaska-asap/comment-page-1/#comment-75401</link>
		<dc:creator>Widgetman</dc:creator>
		<pubDate>Fri, 26 Jun 2009 22:54:33 +0000</pubDate>
		<guid isPermaLink="false">http://crankyflier.com/?p=2984#comment-75401</guid>
		<description>Anyone using the phrase &quot;Delta digesting NW&quot; lost me there. Industry experts know full well...Northwest ate Delta from the inside out. DL name kept for $9.1Billion tax credit and the potential of hundreds of millions in bonuses saved from a lowest cost non union group of employees vs. Keeping the Northwest name and it&#039;s hardcore unions.

Airlines that take over others doesn&#039;t replace it&#039;s leadership with the takenover-ee&#039;s leaders.</description>
		<content:encoded><![CDATA[<p>Anyone using the phrase &#8220;Delta digesting NW&#8221; lost me there. Industry experts know full well&#8230;Northwest ate Delta from the inside out. DL name kept for $9.1Billion tax credit and the potential of hundreds of millions in bonuses saved from a lowest cost non union group of employees vs. Keeping the Northwest name and it&#8217;s hardcore unions.</p>
<p>Airlines that take over others doesn&#8217;t replace it&#8217;s leadership with the takenover-ee&#8217;s leaders.</p>
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		<title>By: CMJ</title>
		<link>http://crankyflier.com/2009/06/25/a-bon-bon-for-richard-why-delta-should-buy-alaska-asap/comment-page-1/#comment-75390</link>
		<dc:creator>CMJ</dc:creator>
		<pubDate>Fri, 26 Jun 2009 17:11:57 +0000</pubDate>
		<guid isPermaLink="false">http://crankyflier.com/?p=2984#comment-75390</guid>
		<description>Where does The Traveling Optimist get the idea that rain is a major issue in Seattle that is on par with fog in San Francisco?   While I&#039;ll agree that Seattle doesn&#039;t have the same Asian population as LAX, SFO, or YVR to use as a cachement, there&#039;s enough to go around.  Further, part of the strategy is to spread where one may utilize a combination of connecting AND originating traffic to make a roune viable.  Sure, with the right support SEA-ICN could be viable (as it is now with both KE and OZ serving it), as could SEA-PEK or SEA-PVG.

Quite frankly, having done international transiting through LAX, I&#039;d rather go through SEA with a faster connection beyond.  Bigger doesn&#039;t always mean better.  Sure, there&#039;s more opportunity to get locals on board from LAX, but maybe that is outweighed by the convenience of a quicker journey through another location, even if it means not experiencing one of the most self-centered cities in the world.

...but that said, I&#039;ll join the chorus of those who would prefer that this not happen, even if it looks good on paper.  1) Alaska is too good of an airline to be swallowed up by even the legacy with decent customer service (which isn&#039;t saying much compared to Untied) and 2) as a resident of this corner of the map, I don&#039;t like the increase in airfares that result when one lives in a fortress hub.  Just ask anyone in Cincinnati, Minneapoplis, Memphis, Detroit, Dallas or Atlanta.</description>
		<content:encoded><![CDATA[<p>Where does The Traveling Optimist get the idea that rain is a major issue in Seattle that is on par with fog in San Francisco?   While I&#8217;ll agree that Seattle doesn&#8217;t have the same Asian population as LAX, SFO, or YVR to use as a cachement, there&#8217;s enough to go around.  Further, part of the strategy is to spread where one may utilize a combination of connecting AND originating traffic to make a roune viable.  Sure, with the right support SEA-ICN could be viable (as it is now with both KE and OZ serving it), as could SEA-PEK or SEA-PVG.</p>
<p>Quite frankly, having done international transiting through LAX, I&#8217;d rather go through SEA with a faster connection beyond.  Bigger doesn&#8217;t always mean better.  Sure, there&#8217;s more opportunity to get locals on board from LAX, but maybe that is outweighed by the convenience of a quicker journey through another location, even if it means not experiencing one of the most self-centered cities in the world.</p>
<p>&#8230;but that said, I&#8217;ll join the chorus of those who would prefer that this not happen, even if it looks good on paper.  1) Alaska is too good of an airline to be swallowed up by even the legacy with decent customer service (which isn&#8217;t saying much compared to Untied) and 2) as a resident of this corner of the map, I don&#8217;t like the increase in airfares that result when one lives in a fortress hub.  Just ask anyone in Cincinnati, Minneapoplis, Memphis, Detroit, Dallas or Atlanta.</p>
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		<title>By: CF</title>
		<link>http://crankyflier.com/2009/06/25/a-bon-bon-for-richard-why-delta-should-buy-alaska-asap/comment-page-1/#comment-75378</link>
		<dc:creator>CF</dc:creator>
		<pubDate>Fri, 26 Jun 2009 02:56:26 +0000</pubDate>
		<guid isPermaLink="false">http://crankyflier.com/?p=2984#comment-75378</guid>
		<description>Ok, I guess I was wrong.  I didn&#039;t think this was going to be nearly as controversial as it seems to be.  Excellent.  That makes the discussion more fun.

Zack Rules - I don&#039;t think that there&#039;s a huge antitrust issue here.  There is relatively little overlap, though some Pac NW cities are only served by Alaska and Delta right now.  I&#039;m sure Rep Oberstar would raise hell, but it could probably still be done.  

David SF - This was certainly written from a Delta point of view.  For Alaska, it would be a good way to cash out and make the shareholders richer.  But in this case, I think the employees might end up being better off as well if Delta doesn&#039;t screw it up.  It could provide more flying opportunities and the stations should grow if this was done right.  Do I think Alaska necessarily wants this to happen?  No.  But if Delta wants to make the offer sweet enough, I&#039;m sure Alaska would have to at least listen.

JM - These were not my words but rather those of a guest poster.  Still, regarding the 767s, I think it&#039;s clear they probably do have more than they need.  The international expansion has only recently started to show weakness, but it&#039;s going to get worse.  I have to think that Delta is looking for good places to put 767s right now.  

Optimist - Again, I didn&#039;t write this.  It&#039;s a guest post, but let&#039;s talk about Seattle vs LA and SF.  It is a smaller market, but the LA and SF markets are already quite full of flights.  Seattle has a decent local catchment, certainly better than anything Delta has now for Asian flying.  Plus, with Alaska, they have the added benefit of a very large catchment area that can&#039;t be served well by Delta right now.

As for the airport capacity, my understanding is that Seattle&#039;s new runway allows for simultaneous landings, so there shouldn&#039;t be a capacity issue.

A - Not sure that the Milwaukee strategy is a good one - that&#039;s about to be a bloodbath.  The reality is that sending everyone through Salt Lake makes it a two stop to any place in Asia.  Most people in those cities can fly one stop with United over San Francisco or connect via an alliance.  Delta could be more competitive with 767s from Seattle to several Asian destinations.

Nicholas - Yes, they would lose all those codeshare passengers, but that&#039;s actually good news for Delta.  They immediately make American&#039;s presence in the West far smaller by yanking the codeshare.  Some of the other codeshares they could keep if they wanted, but the fewer number of passengers isn&#039;t necessarily bad in this case.

It&#039;s not a perfect fit - nothing is - but I personally think there is some merit to this proposition.  There is a lot that can be gained here, and that&#039;s often not the case in some of these mergers.  Of course, as has been noted, airlines generally suck at merging so there&#039;s no guarantee that they would do this right.  If, however, they did, then it could be a great move from Delta&#039;s perspective.</description>
		<content:encoded><![CDATA[<p>Ok, I guess I was wrong.  I didn&#8217;t think this was going to be nearly as controversial as it seems to be.  Excellent.  That makes the discussion more fun.</p>
<p>Zack Rules &#8211; I don&#8217;t think that there&#8217;s a huge antitrust issue here.  There is relatively little overlap, though some Pac NW cities are only served by Alaska and Delta right now.  I&#8217;m sure Rep Oberstar would raise hell, but it could probably still be done.  </p>
<p>David SF &#8211; This was certainly written from a Delta point of view.  For Alaska, it would be a good way to cash out and make the shareholders richer.  But in this case, I think the employees might end up being better off as well if Delta doesn&#8217;t screw it up.  It could provide more flying opportunities and the stations should grow if this was done right.  Do I think Alaska necessarily wants this to happen?  No.  But if Delta wants to make the offer sweet enough, I&#8217;m sure Alaska would have to at least listen.</p>
<p>JM &#8211; These were not my words but rather those of a guest poster.  Still, regarding the 767s, I think it&#8217;s clear they probably do have more than they need.  The international expansion has only recently started to show weakness, but it&#8217;s going to get worse.  I have to think that Delta is looking for good places to put 767s right now.  </p>
<p>Optimist &#8211; Again, I didn&#8217;t write this.  It&#8217;s a guest post, but let&#8217;s talk about Seattle vs LA and SF.  It is a smaller market, but the LA and SF markets are already quite full of flights.  Seattle has a decent local catchment, certainly better than anything Delta has now for Asian flying.  Plus, with Alaska, they have the added benefit of a very large catchment area that can&#8217;t be served well by Delta right now.</p>
<p>As for the airport capacity, my understanding is that Seattle&#8217;s new runway allows for simultaneous landings, so there shouldn&#8217;t be a capacity issue.</p>
<p>A &#8211; Not sure that the Milwaukee strategy is a good one &#8211; that&#8217;s about to be a bloodbath.  The reality is that sending everyone through Salt Lake makes it a two stop to any place in Asia.  Most people in those cities can fly one stop with United over San Francisco or connect via an alliance.  Delta could be more competitive with 767s from Seattle to several Asian destinations.</p>
<p>Nicholas &#8211; Yes, they would lose all those codeshare passengers, but that&#8217;s actually good news for Delta.  They immediately make American&#8217;s presence in the West far smaller by yanking the codeshare.  Some of the other codeshares they could keep if they wanted, but the fewer number of passengers isn&#8217;t necessarily bad in this case.</p>
<p>It&#8217;s not a perfect fit &#8211; nothing is &#8211; but I personally think there is some merit to this proposition.  There is a lot that can be gained here, and that&#8217;s often not the case in some of these mergers.  Of course, as has been noted, airlines generally suck at merging so there&#8217;s no guarantee that they would do this right.  If, however, they did, then it could be a great move from Delta&#8217;s perspective.</p>
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		<title>By: Wonko Beeblebrox</title>
		<link>http://crankyflier.com/2009/06/25/a-bon-bon-for-richard-why-delta-should-buy-alaska-asap/comment-page-1/#comment-75376</link>
		<dc:creator>Wonko Beeblebrox</dc:creator>
		<pubDate>Fri, 26 Jun 2009 00:18:52 +0000</pubDate>
		<guid isPermaLink="false">http://crankyflier.com/?p=2984#comment-75376</guid>
		<description>Please don&#039;t take away Alaska.  They are one of the few good, customer-focused airlines left!

BTW- You could make a much better case turning your argument on its head, though:  if Delta execs wanted to sell their entire airline to Alaska (and then quickly get out of the way)....

I still like Alaska/Horizon for their good flights and the fact that they serve as basically a &quot;universal&quot; frequent flyer program.  Plus, they serve the state of Alaska with more than just red-eyes.</description>
		<content:encoded><![CDATA[<p>Please don&#8217;t take away Alaska.  They are one of the few good, customer-focused airlines left!</p>
<p>BTW- You could make a much better case turning your argument on its head, though:  if Delta execs wanted to sell their entire airline to Alaska (and then quickly get out of the way)&#8230;.</p>
<p>I still like Alaska/Horizon for their good flights and the fact that they serve as basically a &#8220;universal&#8221; frequent flyer program.  Plus, they serve the state of Alaska with more than just red-eyes.</p>
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		<title>By: Gary Leff</title>
		<link>http://crankyflier.com/2009/06/25/a-bon-bon-for-richard-why-delta-should-buy-alaska-asap/comment-page-1/#comment-75374</link>
		<dc:creator>Gary Leff</dc:creator>
		<pubDate>Thu, 25 Jun 2009 23:16:47 +0000</pubDate>
		<guid isPermaLink="false">http://crankyflier.com/?p=2984#comment-75374</guid>
		<description>Seattle lacks the degree of transpac flying because it lacks the high yield demand of San Francisco, not becuase Alaska chooses not to fly transpacific.

Which isn&#039;t to say there isn&#039;t already transpacific service, precisely to Seoul and Tokyo which you suggest Delta send 767s out to.  (An odd suggestion, since Delta ALREADY flies SEA-NRT, and chooses to do so with Airbus aircraft).

Delta already gets feed from Alaska through their partnership ,recently amped up.

They&#039;ve got that, what&#039;s the advantage of owning Alaska, giving up their cash to go all-in with more routes in a difficult economic environment?  The goal has to be &#039;profits&#039; not &#039;complementary route maps&#039;.

These things always seem so lovely on paper, when looking at route maps and not profits.  Amercan would be silly to swallow up Alaska, though they benefit greatly from their partnership.  Cf. Reno Air.

Speaking of benefits of beautiful route maps on paper versus economics, where you see advantage in clustering hubs, I see inefficiencies in overflying your own hubs...

Is it conceivable that Delta could buy Alaska?  Sure.  Will it get anti-trust scrutiny?  Sure.  It would help pass muster if Alaska were in more trouble than it is, of course.  The scrutiny would be strict.</description>
		<content:encoded><![CDATA[<p>Seattle lacks the degree of transpac flying because it lacks the high yield demand of San Francisco, not becuase Alaska chooses not to fly transpacific.</p>
<p>Which isn&#8217;t to say there isn&#8217;t already transpacific service, precisely to Seoul and Tokyo which you suggest Delta send 767s out to.  (An odd suggestion, since Delta ALREADY flies SEA-NRT, and chooses to do so with Airbus aircraft).</p>
<p>Delta already gets feed from Alaska through their partnership ,recently amped up.</p>
<p>They&#8217;ve got that, what&#8217;s the advantage of owning Alaska, giving up their cash to go all-in with more routes in a difficult economic environment?  The goal has to be &#8216;profits&#8217; not &#8216;complementary route maps&#8217;.</p>
<p>These things always seem so lovely on paper, when looking at route maps and not profits.  Amercan would be silly to swallow up Alaska, though they benefit greatly from their partnership.  Cf. Reno Air.</p>
<p>Speaking of benefits of beautiful route maps on paper versus economics, where you see advantage in clustering hubs, I see inefficiencies in overflying your own hubs&#8230;</p>
<p>Is it conceivable that Delta could buy Alaska?  Sure.  Will it get anti-trust scrutiny?  Sure.  It would help pass muster if Alaska were in more trouble than it is, of course.  The scrutiny would be strict.</p>
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		<title>By: eponymous coward</title>
		<link>http://crankyflier.com/2009/06/25/a-bon-bon-for-richard-why-delta-should-buy-alaska-asap/comment-page-1/#comment-75373</link>
		<dc:creator>eponymous coward</dc:creator>
		<pubDate>Thu, 25 Jun 2009 21:54:00 +0000</pubDate>
		<guid isPermaLink="false">http://crankyflier.com/?p=2984#comment-75373</guid>
		<description>&quot;I wonder if Southwest would be the only benifactor.&quot;

I think Jet Blue could be pretty happy, too.

And look at what&#039;s happened to St. Louis, Pittsburgh and San Jose- the examples of airlines abandoning mid-size cities like Seattle during mergers. To be honest, I would suspect Jet Blue and Southwest would launch themselves even harder at Portland in this scenario. Alaska is already dropping some mainline service for RJ/turboprop service there to the Bay Area- I would bet Delta would completely cut a lot of formerly AS, now DL mainline service in a heartbeat to funnel people to SEA on the grounds of &quot;let&#039;s use our new cool hub&quot;, and let their PDX markeshare wither on the vine.</description>
		<content:encoded><![CDATA[<p>&#8220;I wonder if Southwest would be the only benifactor.&#8221;</p>
<p>I think Jet Blue could be pretty happy, too.</p>
<p>And look at what&#8217;s happened to St. Louis, Pittsburgh and San Jose- the examples of airlines abandoning mid-size cities like Seattle during mergers. To be honest, I would suspect Jet Blue and Southwest would launch themselves even harder at Portland in this scenario. Alaska is already dropping some mainline service for RJ/turboprop service there to the Bay Area- I would bet Delta would completely cut a lot of formerly AS, now DL mainline service in a heartbeat to funnel people to SEA on the grounds of &#8220;let&#8217;s use our new cool hub&#8221;, and let their PDX markeshare wither on the vine.</p>
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		<title>By: brent</title>
		<link>http://crankyflier.com/2009/06/25/a-bon-bon-for-richard-why-delta-should-buy-alaska-asap/comment-page-1/#comment-75372</link>
		<dc:creator>brent</dc:creator>
		<pubDate>Thu, 25 Jun 2009 21:33:28 +0000</pubDate>
		<guid isPermaLink="false">http://crankyflier.com/?p=2984#comment-75372</guid>
		<description>I wonder if Southwest would be the only benifactor.</description>
		<content:encoded><![CDATA[<p>I wonder if Southwest would be the only benifactor.</p>
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