USAir offers to buy Delta?
11-15-2006, 05:42 AM
#11
Line Holder
Joined APC: Oct 2006
Position: FURLOUGHED
Posts: 84
Originally Posted by ERJ135
I had heard today on FOX News that a hostile takeover of DAL was possible by US Airways. Now, given I heard this on the media would this be a possible or do you think its typical media speculation.
J
11-15-2006, 05:48 AM
#12
Gets Weekends Off
Joined APC: Jan 2006
Position: Spartan
Posts: 3,652
From the US Air website...
Dear US Airways Employee,
Are you sitting down?
I have some big news this morning that will surprise some, stun others and – I hope – spark the imagination and competitive spirit in all of us.
This morning we made a proposal to merge with Delta Air Lines. We’ve approached Delta and their creditors with an offer of approximately $8 billion in cash and equity that we would raise in the financial markets. If successful, we would become one of the world’s largest airlines and serve more than 350 destinations on five continents.
Before you ask the obvious question (Gee, Doug, does it really have to be about how big we are and shouldn’t it be more about how good our service/operation is?), let me ask you to step back a bit and look at the larger, long-term picture.
Of course, we have a lot of work right now as we finish our integration. Work continues on the reservations migration, operating certificate and labor contracts.
So while we would prefer that this opportunity wait for that work to be completed, the fact is the world is not going to wait for us. The industry is evolving. Opportunities to grow, expand our network and create a more secure future for our airline don’t come along very often. If we don’t take these opportunities when they present themselves, someone else will.
A lot of people were skeptical about the America West/US Airways combination. We’ve proven them wrong: we’re recalling employees and hiring new people, we’re hitting our integration goals and quickly fixing the inevitable problems that have cropped up during integration and we’re doing all of this profitably.
As a result, we’re a much more successful airline than many thought possible a year ago.
That kind of opportunity exists again for us. A US Airways/Delta combination will give employees a more stable global enterprise, well-positioned for long-term success, able to compete effectively with any type of carrier and better able to weather economic downturns and industry volatility.
Our new airline would have a market share of approximately 18 percent, just slightly larger than the current largest carrier. We would be the largest carrier across the Atlantic to Europe and have the second strongest position in the Caribbean.
Going forward, our transaction must be approved by Delta’s creditors, the bankruptcy court, government regulators and our own shareholders. There is always the possibility that this transaction might not be accepted or approved. Even so, it will be worth the effort.
The history of our business is one of seizing opportunities. We are capable of continuing our integration process while pursing a transaction that will only make our airline better for our customers, employees and shareholders.
Like many of our big announcements, I expect that this one will generate a lot of questions from you, your families, your neighbors and co-workers. We have lots of information on awaCompass and theHub. We’ve also distributed information to your department leaders, and we invite you to listen in to two webcasts today, at 8:15 a.m. EST and 9:35 a.m. EST, both reachable through usairways.com >> About Us >> Investor Relations >> Webcasts/Presentations/Updates.
We are also scheduling an employees-only webcast with me, for Thursday at noon Eastern Time, and will be sending instructions today and tomorrow for linking to that presentation.
Please send questions or comments to [email protected] and look for some of the most frequently asked and answered questions on awaCompass and theHub. I’ll also be out in the operation and visiting in Town Halls or other employee meetings, and I hope you’ll take the time to ask questions.
Thanks for all that you do.
Sincerely,
Dear US Airways Employee,
Are you sitting down?
I have some big news this morning that will surprise some, stun others and – I hope – spark the imagination and competitive spirit in all of us.
This morning we made a proposal to merge with Delta Air Lines. We’ve approached Delta and their creditors with an offer of approximately $8 billion in cash and equity that we would raise in the financial markets. If successful, we would become one of the world’s largest airlines and serve more than 350 destinations on five continents.
Before you ask the obvious question (Gee, Doug, does it really have to be about how big we are and shouldn’t it be more about how good our service/operation is?), let me ask you to step back a bit and look at the larger, long-term picture.
Of course, we have a lot of work right now as we finish our integration. Work continues on the reservations migration, operating certificate and labor contracts.
So while we would prefer that this opportunity wait for that work to be completed, the fact is the world is not going to wait for us. The industry is evolving. Opportunities to grow, expand our network and create a more secure future for our airline don’t come along very often. If we don’t take these opportunities when they present themselves, someone else will.
A lot of people were skeptical about the America West/US Airways combination. We’ve proven them wrong: we’re recalling employees and hiring new people, we’re hitting our integration goals and quickly fixing the inevitable problems that have cropped up during integration and we’re doing all of this profitably.
As a result, we’re a much more successful airline than many thought possible a year ago.
That kind of opportunity exists again for us. A US Airways/Delta combination will give employees a more stable global enterprise, well-positioned for long-term success, able to compete effectively with any type of carrier and better able to weather economic downturns and industry volatility.
Our new airline would have a market share of approximately 18 percent, just slightly larger than the current largest carrier. We would be the largest carrier across the Atlantic to Europe and have the second strongest position in the Caribbean.
Going forward, our transaction must be approved by Delta’s creditors, the bankruptcy court, government regulators and our own shareholders. There is always the possibility that this transaction might not be accepted or approved. Even so, it will be worth the effort.
The history of our business is one of seizing opportunities. We are capable of continuing our integration process while pursing a transaction that will only make our airline better for our customers, employees and shareholders.
Like many of our big announcements, I expect that this one will generate a lot of questions from you, your families, your neighbors and co-workers. We have lots of information on awaCompass and theHub. We’ve also distributed information to your department leaders, and we invite you to listen in to two webcasts today, at 8:15 a.m. EST and 9:35 a.m. EST, both reachable through usairways.com >> About Us >> Investor Relations >> Webcasts/Presentations/Updates.
We are also scheduling an employees-only webcast with me, for Thursday at noon Eastern Time, and will be sending instructions today and tomorrow for linking to that presentation.
Please send questions or comments to [email protected] and look for some of the most frequently asked and answered questions on awaCompass and theHub. I’ll also be out in the operation and visiting in Town Halls or other employee meetings, and I hope you’ll take the time to ask questions.
Thanks for all that you do.
Sincerely,
11-15-2006, 05:59 AM
#14
Gets Weekends Off
Joined APC: May 2006
Position: DC-8 756/767
Posts: 1,144
Here at UPS we have had many DAL pilots, some with more than 18-19 years at DAL, make the switch. Almost all agree that there is no future at Delta. Even though there has not been much news from them lately, they are in deep trouble. DAL can say what they want about the merger, but behind closed doors, they know this may be their only way out.
11-15-2006, 06:07 AM
#15
Gets Weekends Off
Joined APC: Aug 2006
Posts: 116
I'm no expert but I have to think that the bankruptcy judge has more say about this merger than the Delta management. Delta management objecting may just mean it will be a hostile takeover. If US Airways buys Delta, then the Delta CEO is out of a job......so yes....I'd object if I were him too.
11-15-2006, 06:29 AM
#17
Don't want to participate
Joined APC: Jul 2005
Position: 737 Left Seat
Posts: 1,016
Question is, would Delta's pilots be treated any differently since it would be a hostile takeover. Would their AmWest/US Airways brethren demand that they be stapled to the bottom?? Delta's other employee groups are mostly non-unionized, a big bonus for US Airways since they could just casually dismiss as many as they'd like without fear of any union action.
11-15-2006, 06:30 AM
#18
Tri-tanic operator
Joined APC: Jul 2006
Position: Doggie
Posts: 2,382
Parker's Prowess
Originally Posted by Southerncowboyz
FWIW, I don't think it's possible. I don't think Parker will be able to get everyone to sign off on it and it just doesn't make sense. .....
I guess everyone forgot the failed attempt with US Airways and United in 2000 or 99. I know this is a different time, but it'll never fly - no pun intended.
J
I guess everyone forgot the failed attempt with US Airways and United in 2000 or 99. I know this is a different time, but it'll never fly - no pun intended.
J
If anyone can pull it off, Parker can. And trust me, I am NO FAN of his !!!
Just observant of his moves for the last 7 years ... he's slicker than frog snot on a hot humid day.
As far as the failed USAir/UAL deal .... COMPLTELY different USAir, completely different time and place ... FWIW
ON THE LIGHTER SIDE ... Should have seen this coming whenthe AWA/USAir uniform committee decided upon BLACK uniforms for the "new" USAirways ...
Later, CC
11-15-2006, 06:37 AM
#19
...Whatever It Is!
Joined APC: Jul 2006
Posts: 4,680
11-15-2006, 06:37 AM
#20
Gets Weekends Off
Joined APC: Aug 2006
Posts: 116
When Parker was seeking additional capital, large amounts of it, last month, that was a big hint of this.
As for the failed United/US Airways deal of 1999, Airways wasn't in bankruptcy at the time, was it? That changes everything in a deal.
As for the failed United/US Airways deal of 1999, Airways wasn't in bankruptcy at the time, was it? That changes everything in a deal.
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