Will US Airways Increase Its Bid For Delta? | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-04.22.24

Airborne-Unlimited-04.16.24

Airborne-FlightTraining-04.17.24 Airborne-AffordableFlyers-04.18.24

Airborne-Unlimited-04.19.24

Join Us At 0900ET, Friday, 4/10, for the LIVE Morning Brief.
Watch It LIVE at
www.airborne-live.net

Mon, Jan 29, 2007

Will US Airways Increase Its Bid For Delta?

WSJ Report Says Yes...

A report in the Wall Street Journal says US Airways' parent US Air Group hinted over the weekend it would increase its takeover bid of Delta Airlines to the tune of another $1 billion and add a clause to pay Delta's creditors should the deal fail regulatory review.

If the rumors prove true, a second offer in as many weeks would seem to indicate a US Airways pushing hard to win support from Delta's unsecured creditors, and perhaps an airline feeling the heat from last week's Senate hearings on airline consolidation. The east-coast carrier raised its initial November bid to just over $10 billion in US Airways stock and cash earlier this month, but a drop in US Airways' stock value has reduced the total value of that offer by around $500 million.

The latest rumored bid hike would push the cash portion of US Airways' offer to around $6 billion. The stock portion remains at 89.5 million shares, which is worth just under $5 billion based on Friday's close. US Airways has purportedly offered to add a termination fee it would pay to Delta's creditors should they agree to the merger only to have it quashed by the Justice Department.

As ANN reported, a Senate Commerce Committee hearing last week wasn't exactly encouraging for the merger's proponents. Committee members blasted US Airways' CEO Doug Parker suggesting less competition would mean poor service, higher fares and fewer choices for customers. At least one senator worried a US Airways-Delta merger would spark a spate of further mergers. Several hinted the answer is to return to the days of government regulation of the airline industry.

Parker argued consolidation has helped some smaller markets and will help cash-strapped airlines to expand service to poorly served areas of the nation.

Some industry analysts have speculated a US Airways-Delta merger will not pass regulatory scrutiny as the pair compete in too many markets on the US east coast.

FMI: www.usairways.com, www.delta.com

Advertisement

More News

ANN's Daily Aero-Term (04.24.24): Runway Lead-in Light System

Runway Lead-in Light System Runway Lead-in Light System Consists of one or more series of flashing lights installed at or near ground level that provides positive visual guidance a>[...]

ANN's Daily Aero-Linx (04.24.24)

Aero Linx: Aviation Without Borders Aviation Without Borders uses its aviation expertise, contacts and partnerships to enable support for children and their families – at hom>[...]

Aero-FAQ: Dave Juwel's Aviation Marketing Stories -- ITBOA BNITBOB

Dave Juwel's Aviation Marketing Stories ITBOA BNITBOB ... what does that mean? It's not gibberish, it's a lengthy acronym for "In The Business Of Aviation ... But Not In The Busine>[...]

Classic Aero-TV: Best Seat in The House -- 'Inside' The AeroShell Aerobatic Team

From 2010 (YouTube Version): Yeah.... This IS A Really Cool Job When ANN's Nathan Cremisino took over the lead of our Aero-TV teams, he knew he was in for some extra work and a lot>[...]

Airborne Affordable Flyers 04.18.24: CarbonCub UL, Fisher, Affordable Flyer Expo

Also: Junkers A50 Heritage, Montaer Grows, Dynon-Advance Flight Systems, Vans' Latest Officially, the Carbon Cub UL and Rotax 916 iS is now in its 'market survey development phase'>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2024 Web Development & Design by Pauli Systems, LC