Tue, Nov 21, 2006
Especially Interested In East Coast Gates, Planes
It's not even a week
old... but already, the proposed merger between US Airways and
Delta Air Lines is attracting attention from an airline looking to
capitalize on the leftovers.
Low-cost carrier Southwest Airlines is said to be especially
interested in what pickings would remain if the two airlines
consolidated operations.
Gates at airports along the East Coast are of particular
interest to Southwest, which has expanded its presence in that
market in recent years. US Airways and Delta also have 737s in
their fleets -- the only type of aircraft Southwest operates.
Of course, this assumes the merger will go through -- an
assumption Southwest believes has a "decent chance of actually
happening," according to a statement by Southwest CEO Gary Kelly to
The Wall Street Journal. Should the two carriers combine their
operations, US Airways and Delta would need to sell off assets to
address anti-trust concerns.
As Aero-News reported, on
November 15 US Airways Group made its surprise offer for the
bankrupt Delta, offering $8 billion in combined cash and stock to
creditors -- many of whom are still waiting for their money, since
Delta filed for bankruptcy in September 2005.
Delta management has protested the hostile takeover attempt...
and for the moment, is downplaying any talk related to USAG's
bid.
"We can certainly understand the interest in Delta's assets,"
Delta spokeswoman Betsy Talton told Reuters. "However, there are no
Delta assets for sale."
The final decision on the merger, however, will rest with
Delta's creditors... and not management.
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