Old School 737
NG's now and it is A OK!!
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Delta / US Air its over
- Thread starter Old School 737
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acarpe3448
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They wont have enough money post BK! They wanted Delta now so they could cancel aircraft leases etc.etc. while in BK!
B190Captain
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US Airways abandons hostile bid for Delta
By James Politi and Francesco Guerrera in New York
Published: January 31 2007 17:51 | Last updated: January 31 2007 17:51
US Airways on Thursday abandoned its quest to take over bankrupt rival Delta Air Lines, after a three-month campaign that shook the US airline industry and raised hopes of consolidation among the largest carriers.
The move was prompted by the refusal of Delta’s creditors committee to allow US Airways access to the company’s books, a decision that was sharply criticised by Doug Parker, US Airways chief executive.
“We are disappointed that the committee...is ignoring its fiduciary obligation to those creditors...We would have created a better and more financially stable airline that offered more choice to consumers and increased job security to its employees,” said Mr Parker.
The collapse of the bid by US Airways - which is unlikely to be revived - could now delay the long-awaited consolidation among America’s airlines, which have been struggling with high fuel prices, declining passenger numbers and increased competition. The offer by US Airways sparked a flurry of deal conversations involving some of the largest companies in the sector, including Northwest, United, and Continental.
US Airways’s hostile bid for Delta has been closely watched by industry participants to gauge whether antitrust regulators would oppose a tie-up between the nation’s third and fifth largest airlines. At a congressional hearing last month, US Airways’s plan was met with scepticism from a number of senior lawmakers.
US Airways had offered to pay $5bn in cash and 89.5m shares for Delta, valuing the company at about $10bn. Delta’s stand-alone plan, which would give creditors new equity in the company but no cash, values the airline at between $9.4bn and $12bn. The biggest obstacle to the Delta plan had been securing adequate financing to emerge from bankruptcy.
However, on Tuesday, Delta moved a step closer to that goal by agreeing a $2.5bn financing package from a consortium of banks that would be used to repay a $2.1bn bankruptcy loan and other expenses.
The rejection of the US Airways’ bid by the creditors is a victory for Delta’s top management led by Jerry Grinstein, chairman and chief executive, who said a union with US Airways was flawed and would have caused regulatory problems and turmoil with the unions.
Delta has rejected the possibility of inviting a “white knight” bid from another airline, insisting that its plan to end 18 months of court protection in the second quarter of this year was the best way forward.
Shares in US Airways, which is based in Arizona and in 2005 merged with America West, were up 0.5 per cent to $53.38 in noon trading, shortly after the bid was withdrawn. Citigroup and Morgan Stanley were backing the US Airways bid.
By James Politi and Francesco Guerrera in New York
Published: January 31 2007 17:51 | Last updated: January 31 2007 17:51
US Airways on Thursday abandoned its quest to take over bankrupt rival Delta Air Lines, after a three-month campaign that shook the US airline industry and raised hopes of consolidation among the largest carriers.
The move was prompted by the refusal of Delta’s creditors committee to allow US Airways access to the company’s books, a decision that was sharply criticised by Doug Parker, US Airways chief executive.
“We are disappointed that the committee...is ignoring its fiduciary obligation to those creditors...We would have created a better and more financially stable airline that offered more choice to consumers and increased job security to its employees,” said Mr Parker.
The collapse of the bid by US Airways - which is unlikely to be revived - could now delay the long-awaited consolidation among America’s airlines, which have been struggling with high fuel prices, declining passenger numbers and increased competition. The offer by US Airways sparked a flurry of deal conversations involving some of the largest companies in the sector, including Northwest, United, and Continental.
US Airways’s hostile bid for Delta has been closely watched by industry participants to gauge whether antitrust regulators would oppose a tie-up between the nation’s third and fifth largest airlines. At a congressional hearing last month, US Airways’s plan was met with scepticism from a number of senior lawmakers.
US Airways had offered to pay $5bn in cash and 89.5m shares for Delta, valuing the company at about $10bn. Delta’s stand-alone plan, which would give creditors new equity in the company but no cash, values the airline at between $9.4bn and $12bn. The biggest obstacle to the Delta plan had been securing adequate financing to emerge from bankruptcy.
However, on Tuesday, Delta moved a step closer to that goal by agreeing a $2.5bn financing package from a consortium of banks that would be used to repay a $2.1bn bankruptcy loan and other expenses.
The rejection of the US Airways’ bid by the creditors is a victory for Delta’s top management led by Jerry Grinstein, chairman and chief executive, who said a union with US Airways was flawed and would have caused regulatory problems and turmoil with the unions.
Delta has rejected the possibility of inviting a “white knight” bid from another airline, insisting that its plan to end 18 months of court protection in the second quarter of this year was the best way forward.
Shares in US Airways, which is based in Arizona and in 2005 merged with America West, were up 0.5 per cent to $53.38 in noon trading, shortly after the bid was withdrawn. Citigroup and Morgan Stanley were backing the US Airways bid.
Shag McNasty
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- Jul 14, 2002
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- 119
General Lee saved Delta!! Three cheers for General Lee!
bigtexpilot
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- Nov 26, 2001
- Posts
- 83
B737 Guy
Well-known member
- Joined
- Jan 30, 2003
- Posts
- 66
This is wonderful news!
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