Delta-NWA, Continental-United Merging

Delta-NWA, Continental-United Merging

Merger talk is again the topic du jour in aviation news. The latest news that has everyone buzzing comes from The Wall Street Journal, which writes "merger discussions between Delta Air Lines and Northwest Airlines have picked up steam, and a deal could be announced in the next two weeks, according to people who have been briefed on the negotiations." Interestingly, a similar report a day earlier from The Atlanta Journal-Constitution did not seem to ignite the same buzz as the report in the Journal, which picked up the story on its website yesterday afternoon. Like the Journal, the Journal-Constitution also cites only unnamed sources. The AP also cites unnamed sources in saying a deal could come as early as next week.

But the merger story did seem to advance yesterday. The Houston Chronicle says a Delta-NWA merger may end up "triggering a similar response by Houston-based Continental Airlines and United Airlines." Indeed, the Journal cites "a person familiar with the situation" in writing that "preliminary talks between United Airlines parent UAL and Continental Airlines have grown more serious" as the talks between Delta and NWA press on. "It appears unlikely, however, that Continental will pursue a deal until it is fairly certain that Delta and Northwest are going to merge," The New York Times adds.

But, if there is a Delta-NWA deal, the Journal says "the hope" at United and Continental would be to cement their deal "very near a Northwest-Delta announcement, so the two potential combinations would undergo regulatory scrutiny at the same time," the Journal's source says. "Another person with knowledge of the situation said United and Continental are poised to act quickly once another airline merger is announced," the Journal writes.

As for a Delta-NWA merger, talks were thought to have gotten hung up on how power would be shared among each side's management following a combination. But the Journal-Constitution says its sources tell it that "talks moved forward after Northwest's board of directors pressured (NWA CEO Doug) Steenland." The Journal's Wednesday report echoed that development, saying "Mr. Steenland and the board reached agreement on his management team's potential role in the combined carrier."

Meanwhile, over at United and Continental, the Chicago Tribune writes "egos are less of a concern in the current negotiations, sources say. (United CEO Glenn) Tilton appears more open to ceding power. And some leaders within United's powerful labor unions privately say they would welcome the chance to work with Continental managers, known for fostering healthy employee relations." Still, while all the merger talk has dominated airline news in 2008, there's still a possibility for a very anticlimactic outcome. The Journal notes Delta CEO Richard Anderson ultimately "could still tell his board he thinks Delta should remain independent," perhaps scuttling all of the latest merger maneuvering. Stay tuned …

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Airfare Deals and News for the Week of January 18, 2007

American Airlines: 20% Off Mexico
American Airlines (tel. 800/433-7300; http://www.aa.com/) has a great promotion going on right now to Mexico with 20% off all flights from the US to Acapulco, Cancun, Cozumel, Puerto Vallarta, Los Cabos and Ixtapa. This deal is available for travel from April 1, 2008 through April 30, 2008.
This promo only requires a one night minimum stay and a minimum base fare of $125. These deals typically require a Saturday night stay, so compared to others we've seen recently, the terms are pretty favorable.
Reservations must be made via the AA web site using the promotion code DFAPRMXPLE by January 21, 2008.

British Airways: More Bang for your sad little Buck
With the dollar not exactly in top form these days, London may be the last place on earth you'd want to step foot in. In fact, unless Charles & Camilla invite us to stay over in the guest room (which they probably won't after what happened last time with our mascotBrowser. But what were we supposed to do? Put wee-wee pads under every table leg in the palace? Seriously Camilla, big whoop, we said we were sorry, and even sent you both AFWD t-shirts). What do you want from us?!, or a free hotel room magically falls from the sky, we're gonna skip London. Oh, but what's this? A free hotel room has fallen from the sky, sort of. At least that's what British Airways (tel. 800/247-9297; www.ba.com) is offering: Two free nights in London. Well that changes everything!
From what we can tell, there are no strings, just clean sheets and a good night's sleep. Just book the initial stay on the BA web site after you buy your ticket, although not necessarily at the same time.
The fares we have listed are the lowest available for departures through March 23, and can be up to $200 more for take-offs through May 25, depending on your departure city.
You might well be able to find lower fares, so be sure to compare prices on Orbitz before you decide what that free overnight stay is worth to you. One other noteworthy benefit of these fares is that they allow a maximum stay of 11 months instead of the typical 30 days, although they do come with the standard Saturday-night minimum-stay and 7-day advance-purchase requirements. This offer runs until January 24, but you'd better run much faster than that if you want to get yourself a nice room!

AA Caribbean Sale from South Florida
South Floridians looking to take a walk on someone else's beach for a change should check out the latest Caribbean Sale from American Airlines. This sale is good for departures from Miami and Ft Lauderdale, and for travel between January 21 and March 20, 2008.

JetBlue to St Maarten
JetBlue (tel. 800/538-2583; www.jetblue.com) has just tacked on new service between New York to St Maarten, making this their 11th Caribbean destination. Fares are available at a special introductory price of $198 round-trip, or about $292 with taxes. This is good for southbound travel Monday through Wednesday and northbound travel Tuesday through Thursday, starting January 22 through April 2.


http://rcitimeshare.blogspot.com/

Airlines increase fares up to $20

as their fuel costs soar into the blue
As if on cue, airlines are responding to oil's latest surge by pushing ticket prices even higher.
Roundtrip domestic fares began rising $10 to $20 or more late Thursday, as crude futures crossed the once-unthinkable $100-a-barrel mark. Several major carriers increased prices, with each citing higher fuel costs as the reason.
The widespread increases follow nearly two dozen attempted systemwide fare hikes in 2007, or about double the number during the previous year,

Passengers hoping for relief in the new year are likely to be disappointed.
"If oil stays at $100 a barrel, or if it creeps up even higher, I don't see how this is going to stop," FareCompare Chief Executive Rick Seaney said in an interview. "Airlines are going to be scrapping to keep their heads above water."
United Airlines, the second-largest U.S. carrier, led with the biggest round of increases Thursday night