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will not be an opportunity with the committee to move forward in a timely or productive manner and as a result, we have withdrawn our offer.”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.