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Old 01-31-2012, 04:01 AM
  #9  
B757200ER
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Position: B-737 Pilot
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Don't think AA-US or DL will happen, IMO. But, some believe UA or DL + US will:

Delta posts results as merger rumours heat up
Delta Air Lines has posted net income of $1.2bn for 2011 amid rumours it is considering a bid for US Airways.



The bankruptcy of American Airlines could trigger a new round of consolidation in the US airline market, and both Delta and US Airways have hired advisers to study a potential bid for the Fort Worth-based carrier. With a Delta-American combination likely to face a hard task getting past antitrust regulators, a bid for US Airways would appear to be an easier option for Delta.



A Wall Street Journal report over the weekend said US Airways was open to being either a buyer or a seller and was expecting Delta to reach out, citing unnamed sources “familiar with the situation”.



Delta, whose last acquisition was of Northwest in 2008, is in a decent position to make another move. The airline recorded net income for 2011 of $1.2bn, excluding special items, as the company said it offset $3bn higher fuel expense through “strong revenue performance and its fuel hedging programme”. Net income for the December 2011 quarter was $379m, or $0.45 per diluted share, excluding special items. This represents a $221m improvement year over year. Delta’s GAAP net income was $425m, or $0.50 per diluted share, for the December 2011 quarter and $854m for 2011. Adjusted net debt at the end of 2011 was $12.9bn.



“Delta people pulled together in 2011 to produce a solid profit, strong cash generation, and the best operational performance in the industry for our customers,” said CEO Richard Anderson. “Looking forward to 2012, we will continue our commitment to sustained profitability and superior returns by growing and diversifying our revenues, while taking a disciplined approach to capacity, costs and capital spending.”



Jason Holland, Editor, Aircraft Technology Engineering & Maintenance
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