Sat, Nov 18, 2006
Jittery CEO Presses Restructuring Plan Over Offer
A report in the Wall
Street Journal says Delta is seeking support from its creditors to
avoid US Airways Group's (USAG) $8 billion merger bid.
Delta executives reacted negatively to USAG's proposal which
includes $4 billion in cash and 78.5 million in stocks. Those same
executives are understandably nervous as USAG's offer is 40% above
the current average trading price for Delta's unsecured claims.
Delta's CEO has said the airline will emerge from bankruptcy as
a stand-alone company, but WSJ's report says he and other
executives held a series of conference calls with the airline's
creditors attempting to forestall a decision to sell.
USAG has made the pot a very sweet one to ignore. It claims the
merged airlines could save $1.65 billion annually mainly by
eliminating duplicated effort in those markets where the pair now
compete.
Meanwhile, USAG seeks a meeting with those same creditors via
Delta's official creditors committee -- that meeting could come as
early as next week.
The announced offer has set off a flurry of media activity and
speculation on how the markets and customers might react. Reuters
believes a merger might lead to more labor problems. Indeed, USAG
is dealing with a possible strike of its pilots union -- they are
picketing at several locations in protest of USAG's reluctance to
negotiate wage increases.
Some outlets have speculated that the merger will hurt
competition and will likely trigger a challenge by the SEC. USAG's
response is the merged airlines would control only 18% of the
domestic market and will still face competition at most of its
hubs. Moreover, it says, all but 19% of its customers would have
access to low-cost carriers.
More News
Also: B-29 Superfortress Reunion, FAA Wants Controllers, Spirit Airlines Pulls Back, Gogo Galileo Van's Aircraft posted a short video recapping the goings-on around their reorganiz>[...]
Light Gun A handheld directional light signaling device which emits a brilliant narrow beam of white, green, or red light as selected by the tower controller. The color and type of>[...]
"The journey to this achievement started nearly a decade ago when a freshly commissioned Gentry, driven by a fascination with new technologies and a desire to contribute significan>[...]
"Our driven and innovative team of military and civilian Airmen delivers combat power daily, ensuring our nation is ready today and tomorrow." Source: General Duke Richardson, AFMC>[...]
Aircraft Conflict Predicted conflict, within EDST of two aircraft, or between aircraft and airspace. A Red alert is used for conflicts when the predicted minimum separation is 5 na>[...]