USA320Pilot
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US Airways CEO won't rule out higher Delta bid
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delta777
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USA320Pilot
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ClueByFour
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If he actually pulls it.
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delta777
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http://www.msnbc.msn.com/id/16874545/
Besides that, there's this quote from the WSJ yesterday,
"To build support for its plan to remain independent, Delta appears close to agreeing with its official creditors committee on several provisions designed to clear a path toward an eventual tie-up."
Doogie will be getting an answer, i'm afraid it won't be the one he was hoping for.
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USA320Pilot
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In today's webcast Doug Parker indicated:
* US Airways has spent a fraction of "what the bankrupt company on the other side is spending" on takeover expenses.
* US Airways has become the nation's most-profitable network carrier posting a $303 million profit.
* "We expect a more profitable year in 2007 than in 2006."
* Delta's new $2.5 billion in bankruptcy exit financing will be used to repay DIP financing and does not strengthen its balance sheet.
* US Airways is not interested in teaming with a separate, vocal group of Delta bondholders and other creditors, after the deadline passes, to try to block Delta's stand-alone reorganization plan as it winds through Bankruptcy Court. "If this (official) committee is not willing to do what it should do for the people it represents, people that have been defaulted on by Delta management ... we're not willing to pursue this transaction anymore."
Separately, Fortune reported if it's such a good idea (US-DL merger), why is Delta spurning a deal? As Delta exits bankruptcy $5 billion leaner and with a better labor agreement, it's excited about its chances in an airline market projected to be very profitable in 2007. Future years, however, might change Delta's tune. "There needs to be consolidation, or the next downturn will hit the industry hard," says S&P's Jim Corridore.
See Story
Regards,
USA320Pilot
* US Airways has spent a fraction of "what the bankrupt company on the other side is spending" on takeover expenses.
* US Airways has become the nation's most-profitable network carrier posting a $303 million profit.
* "We expect a more profitable year in 2007 than in 2006."
* Delta's new $2.5 billion in bankruptcy exit financing will be used to repay DIP financing and does not strengthen its balance sheet.
* US Airways is not interested in teaming with a separate, vocal group of Delta bondholders and other creditors, after the deadline passes, to try to block Delta's stand-alone reorganization plan as it winds through Bankruptcy Court. "If this (official) committee is not willing to do what it should do for the people it represents, people that have been defaulted on by Delta management ... we're not willing to pursue this transaction anymore."
Separately, Fortune reported if it's such a good idea (US-DL merger), why is Delta spurning a deal? As Delta exits bankruptcy $5 billion leaner and with a better labor agreement, it's excited about its chances in an airline market projected to be very profitable in 2007. Future years, however, might change Delta's tune. "There needs to be consolidation, or the next downturn will hit the industry hard," says S&P's Jim Corridore.
See Story
Regards,
USA320Pilot
Twicebaked
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Hey Delta777....You might want to read post #6 of this thread. You (Delta) aren't as superior as you think.
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USA320Pilot
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US Airways posts 'phenomenal' $303 million profit, firm on Delta deadline
Wednesday January 31, 2007
NEW YORK (ATW Daily News) - US Airways Group reported 2006 net income of $303 million, reversed from a pro forma net loss of $335 million in 2005, results that Chairman and CEO Doug Parker said put the carrier in such a strong position that "we're not going to keep chasing" a merger with Delta Air Lines if DL's creditors' committee doesn't meet US's Feb. 1 deadline.
Parker said yesterday that the DL creditors' committee needs to issue "a press release" expressing "affirmative support" for a due diligence process and for the postponement of a key DL bankruptcy hearing next week. "If they [show support] for those two things, our offer stays on the table," he said. "If they don't, it doesn't." He declined to comment on reports that US has told the committee it will raise the cash portion of its $10.2 billion bid from $5 billion to $6 billion (ATWOnline, Jan. 30).
Parker said US will move forward in a strong position regardless of the creditors' committee's choice, pointing to "phenomenal" 2006 earnings that included a fourth-quarter net profit of $12 million, reversed from a $261 million loss in the prior year. "This is new territory for US Airways," he said. "US Airways has never been the most profitable among the big six [US legacy carriers]."
US Airways Won't Pursue Delta Forever
Ray Neidl, an airline analyst with Calyon Securities in New York, said no matter what happens by Thursday, US Airways probably will continue to look to combine with other carriers.
"I wouldn't be surprised if they didn't do this deal, they wouldn't be out hunting again pretty soon," Neidl said.
See Story
Regards,
USA320Pilot
Wednesday January 31, 2007
NEW YORK (ATW Daily News) - US Airways Group reported 2006 net income of $303 million, reversed from a pro forma net loss of $335 million in 2005, results that Chairman and CEO Doug Parker said put the carrier in such a strong position that "we're not going to keep chasing" a merger with Delta Air Lines if DL's creditors' committee doesn't meet US's Feb. 1 deadline.
Parker said yesterday that the DL creditors' committee needs to issue "a press release" expressing "affirmative support" for a due diligence process and for the postponement of a key DL bankruptcy hearing next week. "If they [show support] for those two things, our offer stays on the table," he said. "If they don't, it doesn't." He declined to comment on reports that US has told the committee it will raise the cash portion of its $10.2 billion bid from $5 billion to $6 billion (ATWOnline, Jan. 30).
Parker said US will move forward in a strong position regardless of the creditors' committee's choice, pointing to "phenomenal" 2006 earnings that included a fourth-quarter net profit of $12 million, reversed from a $261 million loss in the prior year. "This is new territory for US Airways," he said. "US Airways has never been the most profitable among the big six [US legacy carriers]."
US Airways Won't Pursue Delta Forever
Ray Neidl, an airline analyst with Calyon Securities in New York, said no matter what happens by Thursday, US Airways probably will continue to look to combine with other carriers.
"I wouldn't be surprised if they didn't do this deal, they wouldn't be out hunting again pretty soon," Neidl said.
See Story
Regards,
USA320Pilot
EyeInTheSky
Veteran
Personally, I could care less if this happens. I think the bond holders care the most and I suspect they'll be suing Delta and the creditor's committee if "due diligence" is not allowed. If the deal dies a big old can of worms is going to explode and Doogie will be watching from the sideline glad he's not wrapped up in it. Good luck, man.
Later,
Eye
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