Delta's response

[General Lee]

Press ReleaseSource: Delta Air Lines, Inc.

Delta Air Lines Issues Preliminary Statement Regarding US Airways Revised Proposal
Wednesday January 10, 10:41 am ET
ATLANTA, Jan. 10, 2007 (PRIME NEWSWIRE) -- Delta Air Lines today issued the following preliminary statement based on its initial assessment of the revised, unsolicited merger proposal from US Airways:


``Delta's Board of Directors will fulfill its fiduciary duty to review the revised unsolicited merger proposal announced today by US Airways. On its face, the revised proposal does not address significant concerns that have been raised about the initial US Airways proposal and, in fact, would increase the debt burden of the combined company by yet another $1 billion.''


Delta Air Lines (Other OTC:DALRQ.PK - News) offers customers service to more destinations than any global airline with Delta and Delta Connection carrier service to 304 destinations in 52 countries. With more than 50 new international routes added in the last year, Delta is America's fastest growing international airline and is a leader across the Atlantic with flights to 31 trans-Atlantic destinations. To Latin America and the Caribbean, Delta offers nearly 600 weekly flights to 58 destinations. Delta's marketing alliances also allow customers to earn and redeem SkyMiles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Including its SkyTeam and worldwide codeshare partners, Delta offers flights to 457 worldwide destinations in 97 countries. Customers can check in for flights, print boarding passes and check flight status at delta.com.




Maybe the new DL could pay that off by dumping the non-pilot pension still left at the original Delta?? The PBGC wouldn't like that....


Bye Bye--General Lee

 

[Bavarian Chef]

What's one billion when you've already lost 12? I have a funny feeling bout this one General. Knew there would be consolidation, just never thought it would be DL and US. Good luck.

 

[General Lee]

What's one billion when you've already lost 12? I have a funny feeling bout this one General. Knew there would be consolidation, just never thought it would be DL and US. Good luck.

Don't worry, it won't occur if the government gets involved. I think JB and Frontier is more likey---no overlap and little job loss. And the total debt would be more than $13 billion---we have $11 billion now--then add up until you get $23 billion total. Wait, now it would be $24 billion....

Bye Bye--General Lee

 

[FDJ2]

Don't worry, it won't occur if the government gets involved.

It won't even get that far.

 

[spinproof]

Press ReleaseSource: Delta Air Lines, Inc.

Delta Air Lines Issues Preliminary Statement Regarding US Airways Revised Proposal
Wednesday January 10, 10:41 am ET
ATLANTA, Jan. 10, 2007 (PRIME NEWSWIRE) -- Delta Air Lines today issued the following preliminary statement based on its initial assessment of the revised, unsolicited merger proposal from US Airways:


``Delta's Board of Directors will fulfill its fiduciary duty to review the revised unsolicited merger proposal announced today by US Airways. On its face, the revised proposal does not address significant concerns that have been raised about the initial US Airways proposal and, in fact, would increase the debt burden of the combined company by yet another $1 billion.''


Delta Air Lines (Other OTC:DALRQ.PK - News) offers customers service to more destinations than any global airline with Delta and Delta Connection carrier service to 304 destinations in 52 countries. With more than 50 new international routes added in the last year, Delta is America's fastest growing international airline and is a leader across the Atlantic with flights to 31 trans-Atlantic destinations. To Latin America and the Caribbean, Delta offers nearly 600 weekly flights to 58 destinations. Delta's marketing alliances also allow customers to earn and redeem SkyMiles on more than 14,000 flights offered by SkyTeam and other partners. Delta is a founding member of SkyTeam, a global airline alliance that provides customers with extensive worldwide destinations, flights and services. Including its SkyTeam and worldwide codeshare partners, Delta offers flights to 457 worldwide destinations in 97 countries. Customers can check in for flights, print boarding passes and check flight status at delta.com.




Maybe the new DL could pay that off by dumping the non-pilot pension still left at the original Delta?? The PBGC wouldn't like that....


Bye Bye--General Lee

Yeah!!! Thats telling them! Put those desert "rats" in their place! The very Idea of upping their bid..what nerve!! I'm shocked I tell you , shocked!

 

[General Lee]

Yeah!!! Thats telling them! Put those desert "rats" in their place! The very Idea of upping their bid..what nerve!! I'm shocked I tell you , shocked!

Adding more debt to a combined company is a good thing? We would have $24 billion in combined debt. Sound fun? I bet the bankers would be happy. What would be the interest payments each month? Huge. United still has $18 billion in debt, and we managed to lower ours in BK to around $11 billion. (tack on our debt to USAir's debt and the money to aquire us===$24 billion)

No thanks.

And, to top that off:


"I'm concerned about any additional proposals by large carriers. I don't think we need less competition. I think we need more. From the standpoint of consumers I don't think it's beneficial to see some of the largest carriers marry up," Dorgan said.


Bye Bye--General Lee

 

[pipers]

its like walmart.....(no, wait they have money) kmart trying to buy nordstroms. good luck delta..........

 

[Capt.Underpants]

Tweak, tweak.

He'll keep on tweakin' til he gets what he wants.

 

[General Lee]

He'll keep on tweakin' til he gets what he wants.

Nah, the Gov't will shoot it down just like they did the US/UAL deal.


Bye Bye--General Lee


"I'm concerned about any additional proposals by large carriers. I don't think we need less competition. I think we need more. From the standpoint of consumers I don't think it's beneficial to see some of the largest carriers marry up," Dorgan said.

 

[Nightrain_080]

no spin here

its like walmart.....(no, wait they have money) kmart trying to buy nordstroms. good luck delta..........

That is the best comparison yet. Long Live DELTA

 

[Bavarian Chef]

Don't worry, it won't occur if the government gets involved. I think JB and Frontier is more likey---no overlap and little job loss. And the total debt would be more than $13 billion---we have $11 billion now--then add up until you get $23 billion total. Wait, now it would be $24 billion....

Bye Bye--General Lee

I think Frontier and jb makes a ton of sense, but then I am just a line pilot.

 

[xanderman]

well...

Nah, the Gov't will shoot it down just like they did the US/UAL deal.


Bye Bye--General Lee


"I'm concerned about any additional proposals by large carriers. I don't think we need less competition. I think we need more. From the standpoint of consumers I don't think it's beneficial to see some of the largest carriers marry up," Dorgan said.

Let me be the first to say that I am sorry DP wants this so badly. Frankly I love to flip poo in the direction of the DL pilots on this board but I never really believed it would even get this far. When DP said he would not increase his offer I felt that backed up my prediction. Now I am speachless. Now I am starting to worry. All this means to the pilots at both companies is stagnation at best. Furlough at worst. Hmmmm, which one do I want? GL let's hope you government theory is right. I would like to see Mr. "O" come out and say he will NOT allow this to happen but then he does not hold those keys... Time will tell.

Crossing my fingers
Andy

 

[General Lee]

yes....well.....

Here again is part of an article explaining why US/UAL did not clear the Gov't test, why US/AWA did, and why it probably will not with US and DL:



That deal made regulators uncomfortable because United and US Airways were the only carriers offering nonstop service from Washington to a number of cities. Those two also offered the only nonstop service from hub cities such as Philadelphia to Los Angeles.
But when America West declared its affection for US Airways, Justice officials gave that merger its blessing.
That's because the two carriers' route systems had little overlap. America West's operations were concentrated in the West, with hubs in Phoenix and Las Vegas, while US Airways focused on the East, with hubs in Philadelphia, Pittsburgh and Charlotte, N.C.
In a speech to regional air carriers last year, J. Bruce McDonald, deputy assistant attorney general for the Justice Department's antitrust division, called that merger, which created what is now US Airways, "an example of the kinds of mergers that may easily avoid antitrust problems."
US Airways and Delta's networks overlap significantly more — about 18 percent for service among the top 500 city pairs, a JPMorgan analyst team noted in a recent report. That deal would also reduce competition to a potentially unacceptable degree in about 11 city pairs, the JPMorgan analysts noted.


Bye Bye--General Lee

 

[A350]

General:

The U/UAL merger WAS approved with carve outs and divestitures.....when the UAL FA's wanted their contract opened and they won that right, UAL just refused to divest what the DOJ wanted.....hence UAL paid U the $50 mil walkaway payment and the rest is history.

I think the merger is more likely than not....especially if money talks and it usually does.

A350

 

[Green]

its like walmart.....(no, wait they have money) kmart trying to buy nordstroms. good luck delta..........

I think that's a bit of a stretch there. Nordstroms is a premium brand that makes money hand over fist and offers a great product. It's more along the lines of Value Village trying to do a hostile takeover of KMART.

 

[spinproof]

Adding more debt to a combined company is a good thing? We would have $24 billion in combined debt. Sound fun? I bet the bankers would be happy. What would be the interest payments each month? Huge. United still has $18 billion in debt, and we managed to lower ours in BK to around $11 billion. (tack on our debt to USAir's debt and the money to aquire us===$24 billion)

No thanks.

And, to top that off:


"I'm concerned about any additional proposals by large carriers. I don't think we need less competition. I think we need more. From the standpoint of consumers I don't think it's beneficial to see some of the largest carriers marry up," Dorgan said.


Bye Bye--General Lee

Oh there's more competition on the way.....

 

[tblosser]

USAir's new offer may not matter

Delta, Northwest in merger talks-report
Wed Jan 10, 2007 2:43 PM ET

CHICAGO, Jan 10 (Reuters) - Delta Air Lines Inc. <DALRQ.PK> and Northwest Airlines Corp. <NWACQ.PK> are in talks on a possible merger, the Wall Street Journal reported on Wednesday.
The newspaper said representatives of the two carriers, which are No. 3 and No. 5 in the United States respectively, have met regularly for weeks discussing a possible link-up after they both emerge from bankruptcy.
The two airlines have been restructuring in bankruptcy since September 2005. A Northwest spokesman declined to comment. Delta officials were not immediately available for comment.

 

[General Lee]

Didn't the EX transportation SEC Norm Mineta HINT they (the GOVT) would allow NW and DL to emerge as one? I think he did......at a conference in China a year back. Very little overlap, hubs not as close, less job losses, small communities not getting the shaft. It could happen. I bet Alaska will be added to the mix in the end too. We'll see......


Bye Bye--General Lee