Dougie, you've been a bad boy!

[delta777]

US Airways CEO Doug Parker said that Delta’s stand-alone Plan of Reorganization filed Tuesday “will provide Delta creditors with a benchmark against which to evaluate the competing proposals and we welcome that comparison.â€￾ Parker confirmed in a statement posted on US Airways’ Web site that the carrier remains committed to its bid to merge with Delta. “This is an important step in a process that we believe will result in the merger of US Airways and Delta,â€￾ he said.

Parker’s comments reverse his earlier statement that he would not continue his bid for Delta in the face of a rejection by Delta management, which was made Tuesday.

What happened to his comments that he wouldn't fight Delta Management over this deal? Remember, those were his words, not mine.

 

[Walmartgreeter]

[
What happened to his comments that he wouldn't fight Delta Management over this deal? Remember, those were his words, not mine.
[/quote]

If that is reference the USA Today article (first week of Dec.?) that started this discussion..it was discounted by U Management the next day. They said it was their intention (my words) to complete the deal. That is what I remember. Best, Greeter.

 

[dariencc]

US Airways CEO Doug Parker said that Delta’s stand-alone Plan of Reorganization filed Tuesday “will provide Delta creditors with a benchmark against which to evaluate the competing proposals and we welcome that comparison.â€￾ Parker confirmed in a statement posted on US Airways’ Web site that the carrier remains committed to its bid to merge with Delta. “This is an important step in a process that we believe will result in the merger of US Airways and Delta,â€￾ he said.

Parker’s comments reverse his earlier statement that he would not continue his bid for Delta in the face of a rejection by Delta management, which was made Tuesday.

What happened to his comments that he wouldn't fight Delta Management over this deal? Remember, those were his words, not mine.

Here's what happened to his comment. The correction was all over the media the next day, December 6th. Chalk it up to USA Today doing their usual fine job. I still can't understand how they missed the Oberstar story, can you?



US Airways remains committed to Delta merger
Wednesday, December 06, 2006
David Mildenberg - Charlotte Business Journal
US Airways Group Inc. is fully committed to its $8.7 billion proposed takeover of Delta Air Lines even if Delta executives aren't convinced of the deal's merits, US Airways President Scott Kirby said Wednesday.

Kirby said USA Today misinterpreted comments by US Airways Chief Executive Officer Doug Parker in a Wednesday story headlined, "US Airways won't fight over Delta deal."

In that article, Parker is quoted saying, "We have to get to a point where we are all working together on this, or it's not going to happen. This is all about convincing Delta's management that this plan makes sense."

But in an interview with the Charlotte Business Journal Wednesday, Kirby said that Parker didn't suggest US Airways was stepping back or waiting for approval of a deal by Delta CEO Gerald Grinstein.

Parker was emphasizing his sincere desire that Delta's leadership support US Airways' plan because of benefits to employees, customers, creditors and investors, Kirby added.

"We are absolutely committed to this transaction," Kirby said.

In a written statement released Wednesday afternoon, Parker says: "We at US Airways are fully committed to our proposal to merge with Delta. We are pleased to have had the opportunity to meet with Delta's management and the official unsecured creditors' committee over the past week. We believe that our discussions have shown that our proposed merger of US Airways and Delta can be achieved, and that if achieved will create a strong, healthy airline..."

Grinstein has repeatedly declared his opposition to a merger. In his first press interview since the Nov. 15 announcement, Grinstein told the Washington Post Tuesday that a merger would hurt consumers through reduced competition and higher fares.

US Airways (NYSE: LCC) and Delta (Pink Sheets: DALRQ) are trying to convince creditors, regulators and legislators of the benefits of their competing plans. Atlanta-based Delta hopes to emerge from Chapter 11 bankruptcy reorganization early next year as an independent carrier.

Kirby noted that Delta's creditors hold the airline's fate in their hands, making the management opposition less important than in non-bankruptcy mergers.

The creditors' committee is led by aircraft manufacturing giant The Boeing Co. and includes other major vendors and investors.

US Airways' plan projects $1.6 billion in savings from the merger through efficiencies of combining Delta and US Airways, which dominate air service in the Southeast United States.

Grinstein told the Post that "the track record of good mergers is hard to find" in the airline industry and that fares will increase and some communities will lose service if US Airways buys Delta.

In talking to the Washington Post, Grinstein apparently aimed his comments at political leaders and regulators. The U.S. Justice Department is expected to closely monitor the proposed mergers' antitrust impact.

Kirby said the deal is not anti-competitive and he cited the US Airways-America West Holdings Corp. merger for producing lower fares throughout the airlines' network.

Charlotte civic and business leaders are antsy over the proposed merger because airline officials say they will cut flights here if the merger goes through. Charlotte is now US Airways' largest and most profitable hub, but it would become No. 3 behind Atlanta and Philadelphia under the merger.

But Kirby said the loss of flights are minor compared with US Airways' improved long-term financial strength, which he said will benefit customers, communities and employees. The airline does not plan to eliminate service to any destination from Charlotte, he said.

Kirby said he hopes the bankruptcy court will clear the way for US Airways to start due diligence work in the next few weeks. It would then take four to six weeks to study Delta's finances and operations, he said.

US Airways operates 3,800 daily flights to more than 230 destinations in the United States, Canada, Europe, the Caribbean and Latin America.