Brilliant US AIR strategy

[enuffalready]

Is it possible that US AIR threw this hail mary for reasons other than the merger. Maybe they figure if they don't get the merger they can can at least increase Delta's costs coming out of bankruptcy. Rather than have Delta simply impose what they will pay their creditors, this just makes it more expensive to operate.

Creditors see possibility of 1.25 from hostile takeover. Current Delta proposals are far less. US AIR now forces DELTA to increase their bid to fend off the hostile takeover. Maybe not all the way to 1.25 but any increase in costs in the business is a big deal. And they did all this just by filing some paperwork. Seems pretty smart to me.

 

[Mr Biggelsworth]

I just don't see them buying Delta. Whatever happened to this country and the ideas of a monopoly? Reminds me of Rockafeller. I don't think the government would even allow it.

 

[CA1900]

I just don't see them buying Delta. Whatever happened to this country and the ideas of a monopoly? Reminds me of Rockafeller. I don't think the government would even allow it.

Don't kid yourself! If it means getting another airline over the government bailout teat, leaving more money for the war machine, they'll be all for it.

 

[Eagle757shark]

Why is it that we always assume the Government is going to step in and not let it happen? Did the government step in and stop these airline executives from terminating the pensions (that are required by law to be funded) of these hard working men and women at US Airways, Delta, and United. NO!
Also, everyone is assuming the government blocked the merger between US Airways and United back in 2001. Again NO! The fact is United walked away from the government meetings that were taking place between American, US Airways, and TWA to meet regulatory requirements that the DOJ would have approved. United then paid US Airways 50 million dollars to walk away from the merger. This is FACT! So, before everyone says the government will not let this happen, think again! The Department of Justice has guidelines that they will sit down with all involved and allow the companies to workout first.

This could also be a power play to start a bidding war for Delta assets and bases nationwide. Once the America West, US Air merger is complete they could be the strongest carrier on the east coast if they start a bidding war with their main competitor and break it up. Don't take this deal at face value. That is why they say it is important to do this while Delta is in Ch.11.

 

[Citjok]

Why is it that we always assume the Government is going to step in and not let it happen? Did the government step in and stop these airline executives from terminating the pensions (that are required by law to be funded) of these hard working men and women at US Airways, Delta, and United. NO!
Also, everyone is assuming the government blocked the merger between US Airways and United back in 2001. Again NO! The fact is United walked away from the government meetings that were taking place between American, US Airways, and TWA to meet regulatory requirements that the DOJ would have approved. United then paid US Airways 50 million dollars to walk away from the merger. This is FACT! So, before everyone says the government will not let this happen, think again! The Department of Justice has guidelines that they will sit down with all involved and allow the companies to workout first.

This could also be a power play to start a bidding war for Delta assets and bases nationwide. Once the America West, US Air merger is complete they could be the strongest carrier on the east coast if they start a bidding war with their main competitor and break it up. Don't take this deal at face value. That is why they say it is important to do this while Delta is in Ch.11.

I think you are right. Back in 2001 UAL was facing a merger block by the F/A's union. If I remember right they were threatning to strike also.

 

[Mercyful Fate]

The ball game in the airline biz is totally different than it used to be..dont count on the Government saying no to this....