US Airways makes a bid for Delta Air Lines

They’ve offered $8 Billion for the bankrupt Atlanta-based carrier.

Senator Johnny Isakson today responded, saying:

“As the largest employer in Georgia, Delta Air Lines is vital to Georgia’s economy and to the thousands of Georgians it employs. Delta has put in place an aggressive plan to emerge in 2007 as a strong, stand-alone carrier and I am very confident it will succeed.

As U.S. senator, I have worked very hard to help Delta and its employees through hard times and I will work even harder to keep Delta as an outstanding corporate partner headquartered in Atlanta for many, many years to come.

4 comments

  1. StevePerkins says:

    This is sad from a Georgia-pride perspective, and could be yet another blow to the local economy if it results in some Atlanta air traffic being distributed to other hubs.

    However, this sort of thing HAS to happen in the airline industry. We supposedly “deregulated” the industry a couple decades back, but continue to prop up airlines and artificially game the system so the market cannot function properly. The bottom line is that the major carriers are not operating with a sustainable business model, so consolidation and operational changes have to happen unless you want to prop up the industry forever with handouts and bankruptcy protections.

    The part that gets me is that U.S. Airways was on death’s door themselves just a couple of years ago. Because the government lets airlines go bankrupt without forcing them to liquidate, it’s a competitive ADVANTAGE to file bankrupcy and shed your obligations while still competing against your debt-saddled competitors. Japan went through this same mentality for the longest time, refusing to allow failing companies to fail… and rather than protecting jobs they got a decade-long slump for their troubles.

  2. The Busdriver says:

    Delta isn’t going anywhere. There will always be a market for an overpriced, late-departing, late-arriving, poorly run airline.

  3. IndyInjun says:

    Ah Busdriver who said….

    “Delta isn’t going anywhere.”

    That about sums up the problem.

    Several of the last times I even attempted to fly Delta out of Augusta, I made the return leg home on a BUS.

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