PITbull
Veteran
- Dec 29, 2002
- 7,784
- 456
Directly off the press: AFA East MEC E-line.
I guess when transactions are in the BILLIONS, working out a few million dollars of improvements for the f/as is "chump change"...surely won't kill the investors....ITS BUSINESS. Read Below:
US AIRWAYS BIDS TO MERGE WITH DELTA AIRLINES
In a press release issued yesterday morning, US Airways announced it has made a proposal to Delta Airlines under which both companies would combine after Delta emerges from bankruptcy. US Airways has committed financing from Citigroup and has offered 8 billion dollars in cash and stock to acquire Delta Airlines. The airline will operate under the name of Delta Airlines.
Earlier this year US Airways CEO Doug Parker made inquiries to Delta CEO Gerald Grinstein proposing a merger. Those inquiries were rebuffed. Delta still continues to insist it can emerge from bankruptcy as a standalone carrier. In today" proposal US Airways has outlined specific terms to merge the carriers.
Several hurdles remain for the transaction to actually occur. The merger offer would have to be approved by the creditors committee and the bankruptcy court and pass government anti-trust scrutiny.
In a mid-day conference call, the Company told Union leaders the proposed timetable for the merger, if allowed, would be in excess of 8 months. The Company wants to continue the process of merging US Airways and America West labor contracts and operations prior to the potential Delta merger.
Delta Flight Attendants are not represented by a union and do not operate under a collective bargaining agreement. The Company has told the Unions they are no longer standing by their statement to negotiate cost neutral contracts but will agree to a negotiation process that would allow for the "higher" of the three contracts or work rules.
AFA attorneys will be briefing the MEC with respect to the fact that Delta Flight Attendants are not represented by a union.
Thank you,
Mike Flores, President
US Airways MEC
AFA-CWA
I guess when transactions are in the BILLIONS, working out a few million dollars of improvements for the f/as is "chump change"...surely won't kill the investors....ITS BUSINESS. Read Below:
US AIRWAYS BIDS TO MERGE WITH DELTA AIRLINES
In a press release issued yesterday morning, US Airways announced it has made a proposal to Delta Airlines under which both companies would combine after Delta emerges from bankruptcy. US Airways has committed financing from Citigroup and has offered 8 billion dollars in cash and stock to acquire Delta Airlines. The airline will operate under the name of Delta Airlines.
Earlier this year US Airways CEO Doug Parker made inquiries to Delta CEO Gerald Grinstein proposing a merger. Those inquiries were rebuffed. Delta still continues to insist it can emerge from bankruptcy as a standalone carrier. In today" proposal US Airways has outlined specific terms to merge the carriers.
Several hurdles remain for the transaction to actually occur. The merger offer would have to be approved by the creditors committee and the bankruptcy court and pass government anti-trust scrutiny.
In a mid-day conference call, the Company told Union leaders the proposed timetable for the merger, if allowed, would be in excess of 8 months. The Company wants to continue the process of merging US Airways and America West labor contracts and operations prior to the potential Delta merger.
Delta Flight Attendants are not represented by a union and do not operate under a collective bargaining agreement. The Company has told the Unions they are no longer standing by their statement to negotiate cost neutral contracts but will agree to a negotiation process that would allow for the "higher" of the three contracts or work rules.
AFA attorneys will be briefing the MEC with respect to the fact that Delta Flight Attendants are not represented by a union.
Thank you,
Mike Flores, President
US Airways MEC
AFA-CWA
