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Tue, Dec 12, 2006

USAG Remains 'Absolutely Committed' To Delta Bid

Says Parker's Comments Were Misinterpreted

Despite word last week that US Airways CEO Doug Parker would drop his bid to take over Delta Air Lines if executives at the Atlanta-based carrier couldn't be swayed to see his way on things, US Airways Group says it remains "absolutely committed" to the deal, with or without Delta's blessing.

As Aero-News reported, Parker told reporters last week "We have to get to a point where we are all working together on this, or it's not going to happen. This is all about convincing Delta's management that this plan makes sense."

US Airways president Scott Kirby says Parker's remarks were misinterpreted.

"We are absolutely committed to this transaction," Kirby said.

Kirby added that while USAG would certainly rather have the support of everyone at Delta, it doesn't need that approval... and will continue with its plans regardless of what executives at Delta have to say on the matter.

Delta CEO Gerald Grinstein remains convinced the proposed merger would hurt his airline, as well as customers. In a recent interview with the Washington Post, Grinstein noted "the track record of good mergers is hard to find."

Because Delta is in Chapter 11 bankruptcy, however, executives won't have the final say on the merger bid. Instead, Delta's creditors will decide the airline's fate -- and Kirby stressed it is to that audience US Airways is making its strongest pitch.

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

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