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US Airways pulls Delta merger bid
Atlanta Journal-Constitution ^ | 1-31-2007 | Russell Grantham

Posted on 01/31/2007 9:10:31 AM PST by Turbopilot

US Airways on Wednesday withdrew its $10 billion takeover bid for Delta Air Lines, complaining that it did not get a fair hearing from Delta's bankruptcy court creditors.

The Tempe, Ariz.-based airline's decision came on the eve of a Thursday deadline for the creditors to show support for US Airway's two-month-old takeover run.

US Airways withdrawal clears the way for Delta management to continue its plan to emerge from bankruptcy this spring as an independent airline. A court hearing on Delta's reorganization plan is set for Feb. 7 that could allow Delta to begin seeking creditors' votes for its plan.

US Airways CEO Doug Parker said in a statement: "We are disappointed that the (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."

US Airways withdrawal clears the way for Delta's management to continue with its plan to emerge from bankruptcy this spring as an independent airline. A court hearing on Delta's reorganization plan is set for Feb. 7 that could allow Delta to begin seeking creditors' votes for its plan.


TOPICS: Business/Economy; US: Arizona; US: Georgia
KEYWORDS: airline; delta; merger; usair
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Good news.
1 posted on 01/31/2007 9:10:34 AM PST by Turbopilot
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To: Aeronaut; Paleo Conservative

Aviation ping.


2 posted on 01/31/2007 9:10:52 AM PST by Turbopilot (iumop ap!sdn w,I 'aw dlaH)
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To: Turbopilot

I supposed its good news if you work for Delta.


3 posted on 01/31/2007 9:16:24 AM PST by marvlus
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To: Turbopilot

Atlanta should be breathing a sigh of relief.


4 posted on 01/31/2007 9:16:45 AM PST by mort56
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To: mort56

We are. So are 50,000 or so Delta employees all over the world.


5 posted on 01/31/2007 9:20:04 AM PST by Turbopilot (iumop ap!sdn w,I 'aw dlaH)
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To: marvlus

A lot more than that. This deal had very few winners and a whole lot of losers if it went through.


6 posted on 01/31/2007 9:20:31 AM PST by Turbopilot (iumop ap!sdn w,I 'aw dlaH)
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To: Turbopilot

Years ago, one of our top oil traders predicted there would be three surviving airlines: American, United and Delta.


7 posted on 01/31/2007 9:21:38 AM PST by Eric in the Ozarks (BTUs are my Beat.)
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To: Turbopilot

Gee, I'll still be able to fly out of the "Magic Valley!"


8 posted on 01/31/2007 9:21:54 AM PST by Shady
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To: Eric in the Ozarks
Years ago, one of our top oil traders predicted there would be three surviving airlines: American, United and Delta.

I guess he didn't foresee Southwest and JetBlue.
9 posted on 01/31/2007 9:32:57 AM PST by sittnick (There is no salvation in politics.)
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To: sittnick

It was before any of these were born.


10 posted on 01/31/2007 9:34:38 AM PST by Eric in the Ozarks (BTUs are my Beat.)
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To: Turbopilot; Tijeras_Slim; FireTrack; Pukin Dog; citabria; B Knotts; kilowhskey; cyphergirl; ...

11 posted on 01/31/2007 9:39:13 AM PST by Aeronaut (Hebrews 13:4)
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To: Turbopilot

Translation: They were bottom feeders looking for a sweetheart deal in bankruptcy court. They figured those in the bankruptcy courts were suckers.


12 posted on 01/31/2007 9:39:52 AM PST by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Turbopilot

Homer simpson quote for Delta: "Doh!"


13 posted on 01/31/2007 9:43:59 AM PST by Sword_Svalbardt (Sword Svalbardt)
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To: mort56
Atlanta should be breathing a sigh of relief.

Delta's second largest hub city after Atlanta is the greater Cincinnati area facility in northern Kentucky (CVG). The Delta employees there, I'm sure, are relieved because had the merger gone thru chances are this airport would have lost hub status.
For the customers who originate flights at CVG Delta's monopoly here has led to major price gouging by this airline. A R/T to Washington, DC during the week, typical business type travel, costs over $1000.00. Many business travelers elect to drive to nearby cities such as Dayton, Columbus, Louisville, Indy to save several hundred dollars on flights ... for instance, by driving to Dayton (approx. 60 miles) for a direct flight to DC (R/T) the cost is a little over $500.00. So Delta employees in this area may feel relieved the merger didn't go thru ... the paying customers they gouge may feel differently.

14 posted on 01/31/2007 9:59:34 AM PST by BluH2o
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To: Turbopilot
US Airways was just after Delta's NM Liquor License.

Flights to New Mexico Dry Up

The bar is closed on US Airways' New Mexico flights.

The state ordered the airline to stop serving alcohol on flights to or from New Mexico after learning that it didn't have a state liquor license. The discovery came during an investigation of a fatal drunken-driving crash involving a man who was accused of being intoxicated on a US Airways flight to Albuquerque, said Ed Lopez, superintendent of the state Regulation and Licensing Department.

"We're interpreting it to apply to all US Airways flights scheduled to arrive in or depart from New Mexico," Lopez said of the order. "They should not be selling alcohol while in New Mexico airspace."

The lack of a license means the airline is "effectively bootlegging," he said.

US Airways spokeswoman Valerie Wunder said Tuesday, "We're aware of the order and we're going to comply."

The airline has about two weeks to notify state regulators that it has stopped serving alcohol, and then it may apply for a liquor license, Lopez said. All other major airlines operating in New Mexico are licensed, he said.

15 posted on 01/31/2007 10:06:09 AM PST by Yo-Yo (USAF, TAC, 12th AF, 366 TFW, 366 MG, 366 CRS, Mtn Home AFB, 1978-81)
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To: Yo-Yo
US Airways was just after Delta's NM Liquor License.

I was going to say the same thing.

Airline Booze Sales Targeted (NM-Richardson power play)

Airline Booze Law Not Unique (NM-DUI)

16 posted on 01/31/2007 1:00:52 PM PST by CedarDave (California wants to ban light bulbs. If passed they will never have a bright idea)
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To: Turbopilot

Not good news.

I was looking forward to non-revving to so many more fun places.

And wiping the smugness off the face of all the Atlanta folk.

Oh well, DL is in a world of hurt and its only gonna get worse. US is making money, DL is bleeding red.


17 posted on 01/31/2007 5:12:50 PM PST by Central Scrutiniser (Never Let a Theocon Near a Textbook. Teach Evolution!)
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To: Central Scrutiniser
Well, it's good news for DL employees who want to keep their jobs now and US employees who want to have their jobs five years from now. Maybe not so much if you're Doug Parker or a hedge fund bond flipper.

Oh well, DL is in a world of hurt and its only gonna get worse.

I'd check your facts on this one. But nothing is certain; we'll see how it all plays out this time next year or so.

I like your tagline, by the way.

18 posted on 01/31/2007 5:48:48 PM PST by Turbopilot (iumop ap!sdn w,I 'aw dlaH)
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To: Turbopilot

Thank goodness. Delta, for all its problems, is a pretty pleasant line to fly. A lot better than US Airways, which has horrid service, lousy food, uncomfortable planes, and a real customer-hostile attitude.


19 posted on 01/31/2007 5:50:58 PM PST by livius
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To: Eric in the Ozarks
It was before any of these were born.

So this was 35-40 years ago?

20 posted on 01/31/2007 6:01:03 PM PST by Doe Eyes (.)
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