US Airways pulls out.

AJC: US Airways pulls Delta merger bid

US Airways CEO Doug Parker said in a statement: “We are disappointed that the (official court-appointed creditors) Committee, which has been chosen to act on behalf of all Delta creditors, is ignoring its fiduciary obligation to those creditors.

“Our proposal would have provided substantially more value to Delta’s unsecured creditors than the Delta stand-alone plan. We would have created a better and more financially stable airline that offered more choice to consumers and increased job security to its employees. Our merger would have been able to be consummated in a reasonable time-frame and we would have been able to obtain all requisite regulatory approvals.”

Parker also said: “It is now clear that there will not be an opportunity with the committee to move forward in a timely or productive manner and as a result, we have withdrawn our offer.”

I think this is good news. A merger with US Airways would have far too many overlapping routes and duplicate job positions to be workable in my opinion. However, in the long run in may be necessary for Delta to merge with someone.

My uncle, a former Delta pilot and one time head of the pilot’s union, has told me for years the airline industry must consolidate. It seems his observation was correct.

15 comments

  1. ColinATL says:

    Um, if the story is about Delta NOT consolidating, why do you arrive at the conclusion that the industry MUST consolidate?

  2. SouthernConservative says:

    There could be more pulling out – it appears that alot of people want to stick it to Delta hard, though for the moment Delta seems to have founds a small hole to slide into and relieve some of their pressure.

  3. rugby_fan says:

    It’s funny, when I saw “pulls out”, after all of the sophomoric references to gratuitous sexual acts, I was convinced this was not about business transaction.

  4. dingleberry says:

    U.S. Airways has decided NOT to make the same mistake that George H. W. Bush made the night George W. Bush was concieved. It pulled out before it was too late…

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