Merger Update

By | December 6, 2006

US Airways issued a press release earlier today, advising that they are fully committed to their proposal to merge with Delta.

Today in the Sky reports, however, that CEO Doug Parker told USAToday that his company could abandon the attempt if management continues to oppose the merger. He will not fight Delta in court without the backing of Delta officials, something it is aggressively trying to acquire.

Gerald Grinstein, Delta’s CEO, has noted not only skepticism about the overall plan, but the timing. US Airways hasn’t completed its merger with America West, and it wants to take on another one. We tend to agree with Grinstein. The two airlines have a great deal of differences, and if it leads to more mergers, it could leave the industry in confusion while the airlines finish reorganizing each other.