U.S. Airways bids 8 Billion to buy Delta

[G2T]

This could get interesting:

http://www.startribune.com/535/story/812431.html

Discuss amongst yourselves...

 

[yahooair]

- US Airways Group, Inc. (LCC.N: Quote, Profile, Research) on Wednesday said it had made a merger proposal with Delta Air Lines Inc. (DALRQ.PK: Quote, Profile, Research) under which the companies would combine upon Delta's emergence from bankruptcy.
The proposal would provide about $8 billion of value in cash and stock to Delta's unsecured creditors, US Airways said. Delta creditors would receive $4 billion in cash and 78.5 million shares of US Airways stock with an aggregate value of around $4 billion based on Tuesday's closing stock price.

 

[yahooair]

just got this....
letter from Doug Parker

Dear US Airways Employee,

Are you sitting down?

I have some big news this morning that will surprise some, stun others and – I hope – spark the imagination and competitive spirit in all of us.
This morning we made a proposal to merge with Delta Air Lines. We’ve approached Delta and their creditors with an offer of approximately $8 billion in cash and equity that we would raise in the financial markets. If successful, we would become one of the world’s largest airlines and serve more than 350 destinations on five continents.
Before you ask the obvious question (Gee, Doug, does it really have to be about how big we are and shouldn’t it be more about how good our service/operation is?), let me ask you to step back a bit and look at the larger, long-term picture.
Of course, we have a lot of work right now as we finish our integration. Work continues on the reservations migration, operating certificate and labor contracts.
So while we would prefer that this opportunity wait for that work to be completed, the fact is the world is not going to wait for us. The industry is evolving. Opportunities to grow, expand our network and create a more secure future for our airline don’t come along very often. If we don’t take these opportunities when they present themselves, someone else will.
A lot of people were skeptical about the America West/US Airways combination. We’ve proven them wrong: we’re recalling employees and hiring new people, we’re hitting our integration goals and quickly fixing the inevitable problems that have cropped up during integration and we’re doing all of this profitably.
As a result, we’re a much more successful airline than many thought possible a year ago.
That kind of opportunity exists again for us. A US Airways/Delta combination will give employees a more stable global enterprise, well-positioned for long-term success, able to compete effectively with any type of carrier and better able to weather economic downturns and industry volatility.
Our new airline would have a market share of approximately 18 percent, just slightly larger than the current largest carrier. We would be the largest carrier across the Atlantic to Europe and have the second strongest position in the Caribbean.
Going forward, our transaction must be approved by Delta’s creditors, the bankruptcy court, government regulators and our own shareholders. There is always the possibility that this transaction might not be accepted or approved. Even so, it will be worth the effort.
The history of our business is one of seizing opportunities. We are capable of continuing our integration process while pursing a transaction that will only make our airline better for our customers, employees and shareholders.
Like many of our big announcements, I expect that this one will generate a lot of questions from you, your families, your neighbors and co-workers. We have lots of information on awaCompass and theHub. We’ve also distributed information to your department leaders, and we invite you to listen in to two webcasts today, at 8:15 a.m. EST and 9:35 a.m. EST, both reachable through usairways.com >> About Us >> Investor Relations >> Webcasts/Presentations/Updates.
We are also scheduling an employees-only webcast with me, for Thursday at noon Eastern Time, and will be sending instructions today and tomorrow for linking to that presentation.
Please send questions or comments to [email protected] and look for some of the most frequently asked and answered questions on awaCompass and theHub. I’ll also be out in the operation and visiting in Town Halls or other employee meetings, and I hope you’ll take the time to ask questions.
Thanks for all that you do.
Sincerely,

 

[WSurf]

Where's The General on this one!

 

[Ganja60Heavy]

Does that mean I can get buddy passes on USScare? Yippee! Philthydelphia, here I come!

 

[BoilerUP]

Well, if this does happen, talk about an absolute bloodbath at the regional level...

 

[suupah]

combined to create the worlds largest crappy airline! we lose more bags and piss more people off than any airline in history!

 

[ceo_of_the_sofa]

Wow...How soon can WOs bid for 777 RO slots? There's some super senior folk in MDT, I tell ya.

And I can tell friends I work for Delta now!

 

[WSurf]

Wow...How soon can WOs bid for 777 RO slots? There's some super senior folk in MDT, I tell ya.

And I can tell friends I work for Delta now!

All Delta Pilots will be stapled below the CEL folks!!! There will be a meeting next week to see if they can be added to the flowthru!! ;-)

 

[John Pennekamp]

It's on the news in 'da ATL that Delta has said they're not interested.

This will have to become a hostile takeover. US Air is offering $1.25 on the dollar to the creditors for Delta stock. This may be interesting indeed.