US Airways cancels Delta acquisition

[Durhamite]

Delta has plans to fly solo:

http://www.charlotte.com/mld/charlotte/16273224.htm

I hope US Airways remains a hub as I fly out of RDU and CLT quite frequently.

[SmellyCat]

Woo hoo! Looks less and less like this horrible scenario for Charlotte, Atlanta and consumers in general will go through. To quote an analyst from the rating agency S&P, "It will now be extremely difficult for this merger to go forward. USAirway's options are to raise its bid, try to sway creditors or retract its bid."

[monsoon]

As was pointed out earlier, the decision isn't in Delta's hands. It's in the creditors and they along with the bankrupcy judge will decide what happens. The Judge is required by law to protect the creditors and if someone comes along looking to save the company they it will get serious consideration, because what Delta is asking for, is for the Feds to take over its liabilities. If USAir is willing to do that instead, I don't know why they would turn that down.

[SmellyCat]

As was pointed out earlier, the decision isn't in Delta's hands. It's in the creditors and they along with the bankrupcy judge will decide what happens. The Judge is required by law to protect the creditors and if someone comes along looking to save the company they it will get serious consideration, because what Delta is asking for, is for the Feds to take over its liabilities. If USAir is willing to do that instead, I don't know why they would turn that down.

[lukedog]

Well, we'll have to wait and see if USAir can sway Delta creditors, like S&P says. My gut and 15 years of experience in the fixed income field says it won't. Of course, there are much smarter people than me on here.

[dubone]

Wait, that article does say that the board has rejected it, but it is up to the creditors and the bankruptcy judge. It is looking less likely, but it isn't the end of the battle.

[monsoon]

I just saw on the news (channel 9) that it is official- Delta has rejected US Airways offer to buy Delta...citing a few reasons- one of which is flawed projections and expectations on future business. So there you go...US air will keeps its hub in Charlotte.

[lukedog]

Well...., other channels are reported that others are saying the Delta has overstated it's worth and doubt it can pull off it's plan to come out of bankruptcy. However if you can make the bold prediction the hub will stay in Charlotte based on Channel 9 journalism, then that is certainly your right. I note however the station won't even do that.

[cooperdawg]

I said months ago that we would probably end up with 3 or so major carriers in this country but that was quickly rebuffed as being an silly notion. Seems that it is indeed happening.

[kickazzz2000]

Regardless of what any channel is saying about why the merger is not going to go through, they all still back up my point that the the hub will stay in charlotte. My bold prediction about Charlotte keeping it's hub here in Charlotte has nothing to do with what anyone predicts. Rather, the fact that the Delta Board of Directors has rejected the US Airways offer and it was that offer that caused everyone to speculate the hub might leave Charlotte. The deal is done...dead...the hub stays. The link below is from Delta and lists why they rejected the deal.

http://www.delta.com/about_delta/deltas_re...posal/index.jsp

[monsoon]

..... But this deal is not dead based on Grinstein saying it is.

[kickazzz2000]

Indeed. He isn't exactly unbiased in his proclamations considering that if USAir takes over Delta, he is most certainly out of of a CEO job.

[monsoon]

Maybe you didn't read the article.

"Analysts do not expect a quick decision from the creditors

[SmellyCat]

Indeed Metro. However, this is still gives a boost to Delta's chances of emerging from bankruptcy without USAir - a much better chance than there was before this announcement.

[monsoon]

Delta has fired it's only shot in this saga. It's up to USAir now to decide how bad they want this. I have the feeling they have not used up all their ammunition yet.

[uptownliving]

Pretty much every analyst with a head on their shoulders has stated that Delta's numbers they presented yesterday were completely bogus.

If you beleive Delta then you believe that they will have a market value nearly twice that of American and United...both of which are larger airlines. If you beleive that then I have some great oceanfront property for you in West Charlotte.

The Delta CEO has stated he is going to resign at the completion of the bankruptcy whether USAirways buys them out or not...so I really doubt he cares that much about keeping his job.

USAirways has the former Assistant US Attorney General leading them through the Anti-Trust issues...so they know what DOJ is going to do with regard to this issue.

Just a matter of time till USAirways is allowed to do due dilligence.

[Route]

USAir should either buy Northwest or let United buy them. Those 2 make much more sense than Delta because there are many more synergies and much less overlap and both would be good for Charlotte.

[Delta_USAir]

I think this Is perfect for LCC.

First here is the presentation:

http://www.usairways.com/common/resources/...resentation.pdf

this is a good merger for LCC {not saying its the best} In in the HP/US merger we had a 15% reduction

As I stated in another thread LCC is ordering planes. To refresh your memory:

13 A-319's

9 A320

15 A-321

10 A-330-200

20 A-350-800 { about 15 more seats than the 787}

57 ERJ-190's

That equals~124 more Aircraft.

Now why did we have a 15 percent reduction just to buy more aircraft??? Because we have to many RJ's

and smaller regional aircraft.Now people who are worried about KCLT loosing its flights are wrong.

You have 8 RJ 200's a day to say...Chicago. You could put 4 A-319. That saves money.

right now we have 9 A-330 300's, and 10 767. Domestic flying is not that profitable no more. The

real money is international flying. How can US do that at KCLT? KPHL may have more demand but no the space. For Pheonix we dont have the plane to fly to Europe.We cant fly to Asia without a bunch of crap.

But Delta has a to of 767 flying DOMESTIC { right now ALL being transverted to international flying}

Delta has :

24 767-300

59 767-300

21 767 400

8 777 200 ER

5 777 200 LR on order

ALL used for International flying!!!

Not to mention some of the 134 757's can fly trans atlantic!!!

and The have international gate ways at JKF, ATL, LAX .All with room to grow.

Whats not for LCC to gain?

This is not about Charlotte this is about LCC.LCC wants to be a international airline.

and Delta has some 767's, and hubs we really do want.

Charlotte will be fine. Sure you may lose 767's, a-330 CRJ-200's. But why would you want the hassle

of your flight always being over booked? As a non-rev i do not want that! But They also suspend big 757's

1/2 empty. I once flew on 757 PHL to CLT not even 1/3 full.

Little cities might suffer {most of which i dont know!} For Example Pinehurst North carolina, Ashland kentucky, altonna Penn.,Dubois Penn., state college penn. ,scranton penn. ETC.

But LCC wants to be international and fly place like El Al, Zurich, ETC.

I'll update later, but i got to catch a flight.

[kickazzz2000]

But LCC wants to be international and fly place like El Al, Zurich, ETC.

[CLT]

BTW, where is El Al?

[Delta_USAir]

I knew it was an airline , but I also heard in the news paper it was a exoctic destination in Israel.

But thats the newspaper for you.

El Al is the airline of Israel, they must have meant Tel Aviv.

[Delta_USAir]

http://www.charlotte.com/mld/charlotte/business/16410704.htm

Morgan Stanley is a very prestigious name on Wall Street, so by adding a name like Morgan Stanley, I am sure US Airways hopes people may look at the deal in a new way.

and on another note Gordon Bethune is meeting with US Airways.

LCC non revs cant even dream of such a merger

[monsoon]

That is a pretty big backer of the proposal.

[Delta_USAir]

for those who dont know who bethune is~

http://www.dailyprogress.com/servlet/Satel...h=!business

http://news.airwise.com/story/view/1168294254.html

[bork]

That is a pretty big backer of the proposal.