US Airways Continues Bid for Delta

By | December 1, 2006

Yesterday, US Airways made a presentation concerning its proposed acquisition with Delta. Doug Parker, US Airways’ Chairman and CEO said, “We were pleased to have made a presentation to both Delta and its creditors about what we believe are the compelling and unique benefits of our plan. We reviewed our offer and had a chance to engage in discussions on the many facets of this proposal. While we recognize the steps that Delta management has taken, we are confident that our proposal for a ‘New’ Delta will create more value than a stand-alone plan.”

Delta issued a response not long after. “Consistent with our obligation to review US Airways’ unsolicited proposal, today we, along with representatives of our Creditors’ Committee, met to listen to US Airways’ presentation concerning US Airways’ proposal to merge with Delta. While we will fulfill this obligation, we will, as we have stated, continue to progress toward filing our stand-alone plan by the end of the year, which would have us emerge from bankruptcy as a highly competitive, independent and financially sound airline by mid-2007. Our plan is working and we have tremendous, hard-won confidence in it.”

Quotes aside, the situation continues to be clear…US Airways wants to merge with Delta, whether Delta wants to or not. Some bondholders and smaller creditors also plan to meet with both carriers, which, if they ally with US Airways, would be able to put pressure on Delta to accept the deal.