CEO Says It Will Continue Pursuit Of Delta
US Airways CEO Doug Parker says his
airline will stand pat on its offer of $8.4 billion for Delta
because it provides better value than Delta's plan to emerge from
bankruptcy as a stand-alone company.
Parker told the Associated Press, "We believe our offer is more
than fair and don't feel any need to amend it at this point,"
adding later, "If these conversations move to negotiations about
value, we're happy to have those conversations. We have not had
those types of conversations yet."
Parker says US Airways has no intention of dropping its pursuit
of Delta despite media reports Delta's creditors committee has said
it's not interested.
"We think this is such a unique opportunity that we have an
obligation to pursue it and because of that obligation we will
pursue it and believe we will be successful," Parker said. "So, no,
I can't envision any scenario where we simply say, 'We change our
mind. We don't think there's the value here and we're going
home.'"
For its part, Delta maintains its investors, employees and
customers will better benefit from a stand-alone, reorganized
company after it emerges from bankruptcy. In a statement issued
Thursday the airline said its plan offers "superior value as well
as a faster recovery and much greater certainty of execution" than
any competing proposal, adding nothing in Parker's latest
statements has changed that.
Yesterday Delta's lawyers announced a February 7 hearing for the
bankruptcy court to consider approving the carrier's reorganization
plan disclosure statement. The statement includes operational
details, and if approved by the court means the carrier can begin
soliciting votes from creditors to approve its implementation.
Without elaborating on what it might do, Parker says if the
statement is approved it might bring urgency to US Airways' offer
adding, "If we start moving to the point where there are things put
in front of the court that are inconsistent with our proposal,
yeah, you'll see the urgency pick up."
By all media reports, Parker seems to face insurmountable
opposition from all the official players in the deal; Delta's
management, its labor unions and the official creditor's committee
have all expressed disdain for the offer -- the issue of regulatory
approval has yet to be addressed. The only ray of hope for US
Airways' offer seems to be an unofficial, ad hoc committee of
unsecured creditors urging Delta and the court to at least consider
it.
Despite all that, Parker remains optimistic saying he's
convinced Delta's creditors will eventually come to see US Airways'
offer as the most profitable option.
Parker said, "What I believe is they will come to the same
conclusion that the public holders of their bonds have come to,
which is that our proposal is worth a lot more than the stand-alone
plan."