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.
Aviation ping.
I supposed its good news if you work for Delta.
Atlanta should be breathing a sigh of relief.
We are. So are 50,000 or so Delta employees all over the world.
A lot more than that. This deal had very few winners and a whole lot of losers if it went through.
Years ago, one of our top oil traders predicted there would be three surviving airlines: American, United and Delta.
Gee, I'll still be able to fly out of the "Magic Valley!"
It was before any of these were born.
Translation: They were bottom feeders looking for a sweetheart deal in bankruptcy court. They figured those in the bankruptcy courts were suckers.
Homer simpson quote for Delta: "Doh!"
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.
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.
I was going to say the same thing.
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.
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.
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.
So this was 35-40 years ago?
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