From usairways at vision.moundalexis.com Tue Dec 5 21:11:38 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 5 Dec 2006 16:11:38 -0500 (EST) Subject: [US Airways] US Airways sweetens deal with pilots Message-ID: <20061205161130.X2973-100000@vision.moundalexis.com> 5 December 2006 ; Pittsburgh Tribune-Review US Airways sweetens deal with pilots http://www.pittsburghlive.com/x/tribune-review/business/gallery/s_482693.html --- PHOENIX - US Airways chief Doug Parker refused to budge this year when his pilots unions asked for a better deal, saying he preferred to combine America West and US Airways pilots' contracts in a way that didn't raise costs. But Parker recently changed his stance, saying the company would pay to bring everyone up to the more lucrative America West contract. "We will go to the cost structure of the higher of the two carriers," company spokesman Phil Gee said Monday in a statement. Pilots say they want more. But it's curious, they said, that the airline would sweeten the deal now that it has a second acquisition in mind: an $8.6 billion offer for the bankrupt Delta Air Lines Inc. "They think they need to solve some of their labor problems prior to making this (Delta) deal successful," union spokeswoman Tania Bziukiewicz said. Even without the Delta offer, it would make sense for an airline to settle its labor disputes quickly, said Ray Neidl, an analyst with Calyon Securities. But he agreed that US Airways Group Inc. has even more incentive to finish combining operations before focusing on Delta. "You don't want this thing to continue to overhang you, especially as you try to do other transactions," Neidl said. Besides, Neidl said, Delta pilots, who have a say in who runs the airline, are using US Airways' labor dispute as an argument not to support Parker's offer. US Airways pilots have been operating under separate contracts since America West announced its acquisition of US Airways last year. Pilots, who have watched the company post profits that beat market expectations since the announcement, are demanding better pay and work conditions than what's spelled out in either contract. They held rallies last month at airports in Charlotte and Phoenix to explain why they deserve more. Bziukiewicz said the union is planning more events to tell everyone -- including Delta creditors and shareholders -- that US Airways still has problems completing its first merger. "We're going to continue to get very visible," she said. In an e-mail, Gee argued that the airline hasn't changed its stance with the unions. He said the company has simply clarified its position. But Bziukiewicz said this is the first time that the company has offered everyone the America West contract, which in general gives pilots better pay, better vacation packages and flight plans. She said the airline previously told members of both unions not to expect any more in pay than their current contract offered. Parker said as much to US Airways shareholders on July 27. "Management's objective is to put those two contracts together without increasing the cost to the firm at all," Parker said in a conference call then. "Basically saying the contracts are the same, or are essentially identical in terms of cost to the company at both airlines." From usairways at vision.moundalexis.com Tue Dec 5 21:13:43 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 5 Dec 2006 16:13:43 -0500 (EST) Subject: [US Airways] JetBlue May Want to Purchase Delta-US Airways Assets Message-ID: <20061205161334.B2973-100000@vision.moundalexis.com> 5 December 2006 ; Bloomberg JetBlue May Want to Purchase Delta-US Airways Assets http://www.bloomberg.com/apps/news?pid=20601103&sid=aZ78XqOJnl_w&refer=news --- By Mary Schlangenstein (Bloomberg) -- JetBlue Airways Corp. may be interested in buying East Coast routes shed by Delta Air Lines Inc. and US Airways Group Inc. in a possible merger, Chief Executive Officer David Neeleman said. JetBlue primarily would want to buy flight slots at Ronald Reagan Washington National Airport and New York's LaGuardia Airport, Neeleman said today during an analyst and investor conference at his New York headquarters. "Those are things we would jump on," Neeleman said. "Anything is of interest in this neck of the woods," he said, referring to the northeast U.S. JetBlue joins low-cost rivals Southwest Airlines Co. and AirTran Holdings Inc. in showing interest in assets that may be cast off by Delta and US Airways should they combine. Delta has rejected US Airways' hostile $8.57 billion bid, saying it's committed to remaining independent. Neeleman said it was "inconceivable" that US Airways would sell LaGuardia assets to Southwest, the largest low-fare carrier, because such a move would reduce ticket prices at the competitive airport. JetBlue is the largest provider of domestic flights at New York's John F. Kennedy International Airport. It flies from LaGuardia to three Florida cities, and also operates from Washington Dulles International Airport. US Airways Chief Executive Officer Doug Parker has said he would sell one of the shuttles operated by Delta or US Airways in New York, Boston and Washington if the merger goes through. The sale would be designed to head off antitrust concerns. Nothing Stupid "We're not interested in overpaying for a shuttle operation," Neeleman said. "We wouldn't do anything stupid, but certainly we'd look at every opportunity that happened to be available." The combined carrier also would trim capacity 10 percent to reduce duplication and help produce $1.65 billion in anticipated cost reductions, US Airways has said. "What happens in either scenario, I think it's positive for us," Neeleman said. A combined carrier would trim flights in JetBlue's markets, while a stand-alone Delta would focus on boosting profits, possibly by raising fares. An increase in ticket prices also would help JetBlue. Neeleman declined to forecast a possible outcome. The company said yesterday it had delayed delivery of 32 Embraer 190 jets to slow growth and help restore profit. Capacity will grow 14 percent to 17 percent next year, about half the airline's recent rate. Capacity will increase 12 percent to 13 percent in 2008 and in 2009, Neeleman said today. JetBlue is continuing talks with "multiple" international carriers on possible marketing agreements under which JetBlue would use its U.S. network to fly passengers arriving at Kennedy from other countries, Neeleman said. JetBlue shares fell 21 cents to $13.62 at 2:04 p.m. New York time in Nasdaq Stock Market composite trading. They have declined 11 percent this year. From usairways at vision.moundalexis.com Tue Dec 5 21:14:41 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 5 Dec 2006 16:14:41 -0500 (EST) Subject: [US Airways] Davis calls for scrutiny of US Airways bid for Delta Message-ID: <20061205161434.M2973-100000@vision.moundalexis.com> 5 December 2006 ; The Cincinnati Post Davis calls for scrutiny of US Airways bid for Delta http://news.cincypost.com/apps/pbcs.dll/article?AID=/20061205/NEWS01/612050368 --- By Michael Collins Post Washington Bureau WASHINGTON - U.S. Rep. Geoff Davis is calling for the federal government to conduct "a full and careful review" of US Airways' proposed hostile take-over of Delta Air Lines. The Hebron Republican said Monday he has sent a letter to Attorney General Alberto Gonzales and Transportation Secretary Mary Peters asking them to review the proposed merger. The letters were dated Dec. 1. "Along with the many Delta/Comair employees in Kentucky and other leaders in our community, I am very concerned about the significant loss of competition and the likely impact on air fares this merger could create," Davis wrote. The overlap of the carriers' routes could result in significant consolidation, reducing flight choices and increasing already-expensive fares at Cincinnati/Northern Kentucky International Airport for consumers, Davis said. "This potential merger affects thousands of jobs, and Delta/Comair has an economic impact for our region in the billions of dollars," Davis wrote. US Airways said last month that it has made an $8 billion cash and stock offer to buy Delta once the Atlanta-based carrier emerges from bankruptcy. If approved, the deal would create one of the world's largest airlines. The merged carrier would operate under the Delta name and serve more than 350 destinations across five continents. Delta leaders, however, have said the company has no interest in the proposed merger. Davis spokeswoman Amanda Keating said the congressman decided to write the letters to Gonzales and Peters because he thought it was important to weigh in on an issue that could have a significant impact on jobs and businesses in his congressional district. Delta operates its second-largest hub at Cincinnati/Northern Kentucky. The hub and the Northern Kentucky headquarters for Comair - a Delta subsidiary - provide an estimated 10,000 jobs and help bring nearly $4 billion a year in commerce to the Cincinnati region. "Delta has worked diligently through challenging economic times and is poised to exit bankruptcy as a strong, competitive standalone carrier next year," Davis said in a statement. "It is in the best interests of Delta's employees, customers and local businesses for Delta and Comair to remain in Northern Kentucky for years to come." Keating said Davis was contacted last week by a number of constituents who are Delta employees and are concerned about what a proposed merger could mean for their pensions. "We feel that Delta and its employees, through extraordinary sacrifice and hard work, are making tremendous progress on their restructuring plan to emerge from bankruptcy as a strong and independent carrier," Davis wrote. "The interests of all may be best served by ensuring they remain on this course." U.S. Sen. Mitch McConnell, R-Louisville, also is concerned about the potential impact any merger could have on Delta's Kentucky employees and looks forward to discussing the matter with Delta's leadership, said his spokeswoman, Julie Adams. From usairways at vision.moundalexis.com Wed Dec 6 21:42:09 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 6 Dec 2006 16:42:09 -0500 (EST) Subject: [US Airways] US Airways CEO will not fight for Delta Message-ID: <20061206164200.R2973-100000@vision.moundalexis.com> 6 December 2006 ; Arizona Republic US Airways CEO will not fight for Delta http://www.azcentral.com/business/articles/1205biz-usairways-ON.html --- Marilyn Adams USA TODAY US Airways will give up its proposed takeover of Delta Air Lines if management there can't be persuaded of the benefits, US Airways CEO Doug Parker said Tuesday. Parker said Tuesday he's not prepared to fight Delta's management in bankruptcy court by submitting a merger plan to the judge without the backing of Delta's management. "We have to get to a point where are all working together on this or it's not going to happen," Parker said during a meeting with editors and reporters at USA Today. "This is all about convincing Delta's management that this plan makes sense." At the same time, though, the Tempe-based company remains confident it will prevail. "Because this transaction creates value that can only be created through a merger, and because the bankruptcy process is designed to elicit value, we're going to get this done," US Airways President Scott Kirby said at the Reuters Aerospace and Defense Summit in Washington. US Airways has made an unsolicited takeover offer of $8billion-plus in cash and stock to acquire Delta, the nation's third-biggest carrier, which is in Chapter 11 bankruptcy. Delta's management has rebuffed the offer, saying it's too risky and that Delta is better off as an independent airline. Delta declined to comment on Parker's remarks. Delta CEO Jerry Grinstein has repeatedly voiced opposition to the merger proposal since US Airways announced it Nov. 15. Delta and US Airways have retained big names in the public relations business to promote their respective views to Delta creditors, Wall Street analysts, airline employees and passengers, and the media. In a memo to employees Tuesday, Grinstein said Delta "is making crucial progress toward becoming a strong, independent, stand-alone company based on a (business) plan that is clearly working." But because Delta is in bankruptcy, its management does not have complete control over the company's fate. Its creditors have standing in bankruptcy court and must approve Delta's business plan before the airline can exit Chapter 11. Delta executives plan to unveil the airline's stand-alone business plan by year-end so creditors can compare the two plans and choose between them. "We're working to make sure we get a chance to show creditors and management that we have a superior plan," Parker said. Delta CFO Ed Bastian has expressed alarm that a merger would prolong the airline's stay in bankruptcy by several months or a year because it would have to be reviewed by antitrust experts at the Department of Justice. That would increase Delta's bankruptcy costs and run the risk of a downturn in the economy or a spike in jet fuel prices, Bastian said. Parker on Tuesday predicted a US Airways-Delta merger could close by June 30, roughly when Delta had predicted exiting bankruptcy alone. Parker called the proposed merger schedule "aggressive," but said he believes it can be done even though US Airways is still working through last year's merger of America West and the old US Airways. Although that deal closed 15 months ago, the new, combined US Airways is still flying with two separate reservation systems and two sets of pilots and flight attendants that are scheduled separately and work under different labor contracts. Parker and Kirby said they would finish merging America West and the old US Airways before beginning a merger with Delta. From usairways at vision.moundalexis.com Wed Dec 6 21:43:26 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 6 Dec 2006 16:43:26 -0500 (EST) Subject: [US Airways] US Airways still eyes growth in Tempe Message-ID: <20061206164320.N2973-100000@vision.moundalexis.com> 6 December 2006 ; Arizona Republic US Airways still eyes growth in Tempe http://www.azcentral.com/arizonarepublic/business/articles/1206biz-bizbuzz1206.html --- One "hitch in the giddyup" of US Airways' proposed more than $8 billion takeover of Delta Air Lines is where the headquarters of the new company will be located: Tempe or Atlanta. The answer to that question got a whole lot murkier recently when US Airways spokesman Morgan Durrant said the company still plans to expand in downtown Tempe and has plans for a multistory office building on Mill Avenue. The company did not release additional details or a timetable. Taxpayers have footed the $812,000 in annual incentives the city has given to US Airways since 1998 for construction of such a building. Tempe can cut that amount by $175,000 if the building isn't done by February, but there's a fat chance that'll happen. US Airways has missed two expansion deadlines and the city has granted extensions. [...] From usairways at vision.moundalexis.com Fri Dec 8 20:00:22 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 8 Dec 2006 15:00:22 -0500 (EST) Subject: [US Airways] Airline chiefs press Congress on USAir merger bid Message-ID: <20061208150012.C2973-100000@vision.moundalexis.com> 8 December 2006 ; Reuters Airline chiefs press Congress on USAir merger bid http://today.reuters.com/stocks/QuoteCompanyNewsArticle.aspx?view=CN&storyID=2006-12-07T004413Z_01_N06335343_RTRIDST_0_DELTA-USAIR-MERGER.XML&rpc=66 --- By John Crawley WASHINGTON, Dec 6 (Reuters) - Chief executives of Delta Air Lines Inc. (DALRQ) and US Airways Group Inc. (LCC) pressed Congress on Wednesday on their opposing views on merging their companies, congressional officials said. Doug Parker of US Airways met with incoming Democratic House Transportation Committee Chairman James Oberstar, who also held discussions with Gerald Grinstein of Delta about US Airway's $8.6 billion hostile bid. "These are confidential, informational meetings, to enable me to understand the nature of the US Airways merger proposal. No decisions were made, none were expected," Oberstar said through a spokesman. The Minnesota Democrat has said he may hold hearings if the two sides agree to merge. Opposition by key lawmakers, concerned about shrinking competition and the impact of mergers on consumers, helped scuttle the proposed marriage of US Airways and United Airlines in 2001. Delta opposes the bid by the smaller US Airways, which reached out to its bankrupt rival's creditors last month with the surprise offer. US Airways said it has held meetings with Delta creditors and its management on the proposal over the past week. And Parker said in a statement on Wednesday that the next step for Delta's board and creditors committee is to formally research and analyze the plan. "I am confident that they will do so. We are absolutely determined to take necessary steps to move the process forward," Parker said. A Delta spokeswoman could not be reached for comment. But Atlanta-based Delta has said this week it still plans to step out of court protection as a stand-alone carrier in the first half of next year. The carrier also has a powerful Senate ally in Georgia Republican Johnny Isakson. Isakson said in an interview with Reuters that he met with Grinstein this week and has also discussed the US Airways proposal with Attorney General Alberto Gonzalez and White House Chief of Staff Joshua Bolten. Isakson said he does not expect the White House to get involved, but he said that he expressed concern to Gonzalez about overlapping routes and a potential loss of competition and service to small communities if the merger moved forward. Isakson said he would also reach out to relevant committee chairmen for commerce and judiciary affairs. "They've paid a tremendous price and they're ready to exit," Isakson said of Delta's intention to leave bankruptcy on its own. Antitrust experts say the merger bid, if Delta agrees to it, would receive close antitrust scrutiny. Delta plans to submit its own reorganization plan to creditors this month. Delta's pilots' union on Tuesday "denounced" the bid, saying a US Airways presentation about the offer last week revealed significant conflicts with their contract. The Air Line Pilots Association is on the nine-member official committee of Delta's unsecured creditors. (Additional reporting by Paritosh Bansal in Washington) From usairways at vision.moundalexis.com Fri Dec 8 20:01:34 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 8 Dec 2006 15:01:34 -0500 (EST) Subject: [US Airways] Delta, US Airways in bottom half of new consumer report Message-ID: <20061208150124.F2973-100000@vision.moundalexis.com> 8 December 2006 ; The Arizona Republic Delta, US Airways in bottom half of new consumer report http://www.azcentral.com/business/articles/1206biz-usairways-ON.html --- BY Dawn Gilbertson Delta took a potshot at suitor US Airways last week after the Tempe carrier gave employees a $50 bonus for a relatively smooth Thanksgiving weekend operation, but a look at the latest industry customer service rankings shows neither carrier has much to brag about. US Airways and Delta each ranked in the bottom half of the industry in October in most categories of the government's monthly Air Travel Consumer Report, and in a couple of areas are hovering near the cellar. In customer complaints, US Airways ranked 18th of 20 carriers, Delta, 17th. Among the 10 major airlines, to which they generally compare themselves, they were seventh and eighth. Both airlines' complaint rates were down from a year ago, US Airways' significantly. US Airways and Delta fared slightly better in baggage handling but still had an above-average rate of missing or lost bags. Delta was ranked 14th, with 8.54 mishandled bags per 10,000 passengers, US Airways a notch ahead, at 13, with 7.89. They ranked ninth and 10th among major carriers. Delta's rate was up significantly from last October's rate of 5.04, while US Airways ' baggage rate was flat. Airlines are carrying significantly more luggage since the ban on full-size carry-on liquids went into place in August, and the industry average for mishandled bags jumped considerably in August. US Airways has bragging rights over Delta in on-time performance, coming in eighth to Delta's No.18 ranking. US Airways' reported an on-time arrival rate of 74.6percent in October, Delta 65.9percent. That puts them at No.4 and 10th, respectively, among major carriers. Delta bumped more passengers and canceled more flights than US Airways and also had more chronically late flights. October is only one month, of course. But with a high-stakes public relations game under way by both airlines, the rankings will be tossed around to suit the airlines' arguments for or against the merger or to taint the other. US Airways wants to merge, Delta wants to remain independent. US Airways noted in a memo to employees about the monthly DOT report Wednesday that it beat Delta in baggage handling. US Airways has been spending a lot of time and money on the issue, given major baggage woes at its Philadelphia hub. President Scott Kirby admitted, though, that the airline is "not quite where we want to be" overall. Last week, in a memo to employees, Delta bragged about how much better it did than US Airways in key measures over the busy Thanksgiving weekend after a US Airways release on the $50 bonus. November results won't be out until early January. On Tuesday, Delta CEO Gerald Grinstein told the Washington Post one of the reasons the airlines are incompatible is because they have "different service philosophies" From usairways at vision.moundalexis.com Fri Dec 8 20:03:13 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 8 Dec 2006 15:03:13 -0500 (EST) Subject: [US Airways] US Carriers Pulling For US Airways Message-ID: <20061208150305.K2973-100000@vision.moundalexis.com> 8 December 2006 ; Airwise News US Carriers Pulling For US Airways http://news.airwise.com/story/view/1165523641.html --- US airline industry executives are looking forward to the benefits of consolidation as US Airways attempts to take over larger, bankrupt rival Delta Air Lines. Industry executives this week said consolidation would take excess capacity out of the system, allowing them to raise fares and keep the industry's recovery on track. But most were content to leave the painful, complicated mergers to someone else. "This is still a troubled industry," said Tom Horton, chief financial officer of American Airlines parent AMR. "If this Delta-US Air deal were to proceed and were to result in a rationalization of capacity, that could only be healthy for the industry." US Airways says it could cut capacity 10 percent by merging with Delta. Capacity cuts generally make it easier for airlines to increase ticket prices, assuming competitors don't immediately fill the void. "I think anytime you talk consolidation you talk capacity reduction. No matter which combination you talk about there is some overlap of routes," said David Neeleman, chief executive of JetBlue Airways. Carriers including Southwest Airlines, JetBlue Airways and Frontier Airlines have voiced interest in picking up gates and landing slots that might be shed if US Airways' USD$8.6 billion bid for Delta goes through. "Our interest is going to be primarily in what we can do on the asset side," rather than actively taking part in industry mergers, said Laura Wright, chief financial officer at Southwest Airlines, the largest US discount carrier. "Our preference to grow has always been to grow organically." Wright's comment echoes those of other airline leaders who support consolidation but don't want to be part of it because of the complexity of merging fleets and work forces. But consolidation might be necessary to keep the industry recovery going. The current formula of packing passengers into planes with relatively low fares is reaching its limits. "We've seen two eye-popping years on the key revenue metrics for the industry... and I don't think that's something we can count on going forward," said Bill Warlick, airlines analyst at Fitch Ratings. Airline executives say US Airways' cash and stock bid, which would create the world's largest airline, is an attractive offer, but the hurdles are still significant. "We thought it was a pretty strong bid in terms of relative value and clearly something that the Delta creditors are going to have to consider," said Southwest's Wright. But resistance from Delta management and Delta's pilots as well as competition concerns, which in 2001 derailed a planned merger between the old US Airways and United Airlines, could still scuttle the deal. "Mega-mergers are very difficult to do in our business," said Paul Tate, chief financial officer at Frontier Airlines. "If I had to weigh probability, I would say it is well less than 50 percent that he (US Airways CEO Doug Parker) will be able to jump over all those hurdles that he has to." From usairways at vision.moundalexis.com Fri Dec 8 20:04:35 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 8 Dec 2006 15:04:35 -0500 (EST) Subject: [US Airways] Bondholders of Delta Air May Influence USAir's Takeover Bid Message-ID: <20061208150427.T2973-100000@vision.moundalexis.com> 8 December 2006 ; New York Times Bondholders of Delta Air May Influence USAir's Takeover Bid http://www.nytimes.com/2006/12/08/business/08delta.html --- By PETER EDMONSTON and MICHAEL J. de la MERCED Several hedge funds and two investment banks holding Delta Air Lines bonds have formed an informal committee, which could play an important role as US Airways seeks to persuade Delta's creditors to support its $8.6 billion offer to acquire Delta out of bankruptcy. The existence of the bondholder committee had been previously reported, but most of its members were not publicly known until it filed documents with the bankruptcy court yesterday. Among the panel's nine members are Avenue Capital Management, a $12 billion hedge fund that recently sold a minority stake to Morgan Stanley, and Silver Point Capital, a $6 billion hedge fund focused on investing in debt. In its takeover proposal, US Airways estimated the total amount of Delta's unsecured claims at about $16 billion. The court filing yesterday did not indicate how much debt the informal committee's members hold. But individual bondholders seeking to nominate themselves to the committee were required to own debt with a face value of at least $200 million, a person close to the committee said. Other members of the unofficial committee include investment banks Deutsche Bank and Lehman Brothers. CarVal Investors, GoldenTree Asset Management, Marathon Asset Management, Trafelet & Company and York Capital Management make up the rest of the panel. A US Airways spokeswoman, Meaghan Repko, said, "Appointing a bondholder committee is normal practice, and we look forward to working with all constituencies as we move along in the practice." A Delta spokeswoman, Betsy Talton, said, "We will consider what they have to say, even though they are not an officially sanctioned voice in the Chapter 11 process." Alan W. Kornberg, the lawyer with Paul, Weiss, Rifkind, Wharton & Garrison who is advising the committee, said that the roster might not yet be finalized. "Don't be surprised if the membership expands," he said. Winning the support of creditors is crucial because Delta is operating under bankruptcy protection and any plan to emerge from bankruptcy must be approved by them. So far, Delta management has said that it intends to file a reorganization plan that allows it to emerge from bankruptcy as a standalone carrier. The official creditors' committee, formed by the United States trustee overseeing Delta's bankruptcy case, includes two of Delta's largest unsecured creditors: the Pension Benefit Guaranty Corporation and the Air Line Pilots Association. Earlier this month, the Pension Benefit Guaranty Corporation, the federal agency that takes over insolvent retirement plans, reached an agreement with Delta that would give it an unsecured claim of $2.2 billion. Delta's active pilots previously negotiated a $2.1 billion claim against Delta's estate. Delta has also agreed to give its retired pilots an additional $800 million in unsecured claims. The pilots' union has declared its opposition to a US Airways-Delta merger. From usairways at vision.moundalexis.com Sat Dec 9 14:46:32 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sat, 9 Dec 2006 09:46:32 -0500 (EST) Subject: [US Airways] Pilots not happy with US Airways' pursuit of Delta merger Message-ID: <20061209094620.C2973-100000@vision.moundalexis.com> 9 December 2006 ; Business Journal of Phoenix Pilots not happy with US Airways' pursuit of Delta merger http://phoenix.bizjournals.com/phoenix/stories/2006/12/04/daily44.html --- The already skeptical pilots union is pouring some more cold water on US Airways Group Inc.'s proposed merger with Delta Air Lines. The Air Line Pilots Association Friday criticized US Airways management for embarking on a $8.6 billion takeover bid for Delta (Pink Sheets: DALRQ) but not yet finalizing combined labor agreements from the 2005 merger with Arizona-based America West Airlines. The pilots union has been pressuring Tempe-based US Airways (NYSE: LCC) to finalize a unified labor pact from the 2005 merger. "Although they have had ample time and opportunity, US Airways hasn't yet merged US Airways and America West, and they have not integrated the pilot groups under one contract. I don't expect that they will be capable of merging a third airline into the fold. ALPA has determined that job protections are available to the pilots in their contract language, and will continue to protect the interest of all ALPA pilots," said Jack Stephan, chairman of the US Airways branch of the pilots union and a pilot for the US Airways. US AIrways management contends a merger with Delta will create an efficient, profitable carrier that will be good for shareholders, employees and the airline sector. US Airways chairman Doug Parker and other airline executives have also pointed out that the merger with America West did not result in major layoffs and the combined carrier has performed well financially in an already tough sector. The pilots union met with US Airways management earlier this week to discuss its concerns. US Airways serves 230 destinations in the U.S., Canada, Europe, the Caribbean and Latin America. From usairways at vision.moundalexis.com Sun Dec 10 18:37:46 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Sun, 10 Dec 2006 13:37:46 -0500 (EST) Subject: [US Airways] US Airways Would Keep Delta Labor Deal Message-ID: <20061210133735.G2973-100000@vision.moundalexis.com> 10 December 2006 ; Houston Chronicle US Airways Would Keep Delta Labor Deal http://www.chron.com/disp/story.mpl/ap/fn/4385735.html --- By BY JAMES AMEND AP Business Writer NEW YORK -- US Airways said Thursday the airline has every intention of seeing its $8.6 billion buyout of Delta Air Lines through, despite strong objections yesterday from the takeover target's pilots and questions about whether regulators would permit the merger. Delta Air Lines' pilots union said Wednesday it plans to rally on Dec. 13 to show its opposition to the hostile bid, and will lobby members of Congress to block the deal. The union's governing body passed a resolution Tuesday night opposing the buyout, saying it would violate their contract. US Airways Chief Operating Officer J. Scott Kirby told analysts at Calyon Securities' industry conference in New York that the takeover would see Delta's pilot contract though, although he did not elaborate further. Kirby also said he wants Delta to consider the buyout as it formulates its post-bankruptcy business plan. "We're asking for a parallel process," said Kirby, who estimated a deal could be done in six months if due diligence was begun today. Delta's 6,000 pilots also expressed concern that the new company would leave Atlanta. Kirby declined to answer questions about where the new company might be headquartered, but did say the takeover would move more traffic to Atlanta and eliminate less profitable flights at some connecting cities elsewhere in the southeast. Kirby also expressed confidence that regulators would permit the combination. Kirby cited the growth of low-cost carriers, the effects of the Sept. 11 terrorist attacks on the industry, airline bankruptcies, and the efficiencies demonstrated by its merger with America West. US Airways estimates the Delta deal represents $1.65 billion in network and cost synergies. "We feel very good about our ability to pass antitrust scrutiny," Kirby said. Kirby noted that Wall Street has already endorsed deal, as evidenced by a 20 percent surge in US Airways stock and a 50 percent gain in the value of Delta's bonds since the takeover was announced Nov. 15. Tempe, Ariz.-based US Airways is the nation's sixth-largest carrier; Delta is the nation's third-largest. Together, their combination would create the largest carrier in the United States in terms of revenue. Shares of US Airways Group Inc. fell 73 cents to $59.70 in morning trading on the New York Stock Exchange. From usairways at vision.moundalexis.com Thu Dec 14 21:16:07 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 14 Dec 2006 16:16:07 -0500 (EST) Subject: [US Airways] Delta pilots host anti-US Airways rally Message-ID: <20061214161559.A2973-100000@vision.moundalexis.com> 14 December 2006 ; Atlanta Business Chronicle Delta pilots host anti-US Airways rally http://atlanta.bizjournals.com/atlanta/stories/2006/12/11/daily20.html --- Delta Air Lines Inc.'s pilots and employees actively defended the company against a hostile merger attempt by US Airways at a Dec. 13 rally in Atlanta. Georgia two U.S. senators appeared at the rally at the Georgia International Convention Center in College Park, in front of a crowd of thousands of Delta employees and their families. The Delta's pilots union says that an initial analysis of the US Airways offer "reveals significant conflicts with the Delta pilots' contract which would dramatically impact the viability of a merger." Delta Capt. Lee Moak, chairman of Delta's pilots union, said, "The intent of the rally is to send a very visible, public message to US Airways, Delta creditors, all Delta employees, and the many communities we serve that the Delta pilots intend to use every resource available to block a merger with US Airways." The Air Line Pilots Association (ALPA) represents approximately 6,300 active Delta Air Lines pilots and 175 furloughed Delta pilots. "Do not underestimate the effect this rally can have as one tool to defend ourselves against the overzealous and misguided attempts of US Airways management to steal control of our company," said a notice to pilots on the union's Web site about the rally. U.S. Senator Saxby Chambliss had already pledged at the Dec. 1 Metro Atlanta Chamber of Commerce luncheon that he would do anything he could to help keep Delta flying independently. Playing on the marketing slogan, "We're ready to fly when you are," Chambliss had told Chamber members. "Georgia's delegation is ready when you are." Also in attendance at today's Delta rally was U.S. Sen. Johnny Isakson, who has vowed to do everything he can to help Delta remain a stand-alone airline. It remains unclear what politicians or unions could do to block the merger deal, but its clear they plan to continue to apply pressure against the deal. Delta (Pink Sheets: DALRQ), which is in bankruptcy, will have to cede much of the decision to its creditors committee, of which the pilots union is a member. But Delta is trying to mount its own campaign to emerge from bankruptcy as a "stand-alone" airline, and to rebuff US Airways $8.7 billion offer. Meanwhile, AirTran Airways, with its major hub in Atlanta, has started to apply public pressure of its own on Midwest Airlines to accept its $290 million merger offer. Midwest rebuffed that offer on Dec. 7 From usairways at vision.moundalexis.com Thu Dec 14 21:29:37 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 14 Dec 2006 16:29:37 -0500 (EST) Subject: [US Airways] Delta workers hiss bid by US Airways Message-ID: <20061214162926.V2973-100000@vision.moundalexis.com> 14 December 2006 ; Houston Chronicle Delta workers hiss bid by US Airways http://www.chron.com/disp/story.mpl/business/4400866.html --- By DAVE HIRSCHMAN ATLANTA - A raucous crowd of more than 3,000 Delta Air Lines workers alternately cheered, booed, clapped and hissed Wednesday as they loudly expressed opposition to a takeover bid by rival US Airways. Delta employee groups used the nearly two-hour rally to bash US Airways, based in Tempe, Ariz., and its CEO, Doug Parker, in pointed, personal terms. He was compared to vilified airline raiders Carl Icahn and Frank Lorenzo and even the fictional Gordon Gekko from the movie Wall Street. "You have underestimated your opponent!" Delta pilot union chairman Lee Moak thundered at the meeting in a convention hall, which combined the fervor of a tent revival with the pragmatism of a political strategy session. "Go back to the desert of Arizona," he added. The pilots union is a large creditor in Delta's bankruptcy case and is a member of the unsecured creditors committee, a key player in determining whether any merger would go forward. US Airways announced its unsolicited $8.7 billion Delta bid in November, after being rebuffed in earlier private approaches. Delta executives, who did not attend Wednesday's rally, say they want to finish the carrier's Chapter 11 restructuring as an independent company. But the airline's creditors have a big say in the outcome. They are analyzing the value and other merits of the US Airways offer and will weigh it against a Delta reorganization plan expected to be filed in bankruptcy court as soon as next week. US Airways has said it would adopt the Delta name if the merger went through but has not said where the combined company would be based. Many experts consider Tempe the likely choice because Parker and his lieutenants would run the airline. They previously ran Tempe-based America West Airlines, which merged with the larger US Airways and adopted its name in 2005. Moak also noted that Parker and his team are still at work on integrating America West and US Airways. "If you want to run an airline," he asked mockingly, "why don't you start with the one you already have?" Phil Gee, a spokesman for US Airways, said he is not surprised by the emotional opposition. "Delta people are very passionate. You'd be hard-pressed to find employees with more pride for their company than they have," Gee said. No other carrier has offered to buy Delta since US Airways' hostile bid last month, and no merger discussions between Delta and any other carrier are ongoing, Moak added Wednesday. US Airways said in a newsletter to employees Wednesday that while management and administrative jobs would likely be reduced if the two companies merged, the proposal "contemplates no involuntary layoffs of line employees when the airlines combine." US Airways also said it isn't anywhere close to making a decision. On Tuesday, lawyers for the Delta creditors committee said that US Airways has made it clear it would walk away from any merger deal if the pilots' pension plan isn't dumped. The Associated Press contributed to this report. From usairways at vision.moundalexis.com Mon Dec 18 22:02:23 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Mon, 18 Dec 2006 17:02:23 -0500 (EST) Subject: [US Airways] Delta's market value to eclipse US Airways bid Message-ID: <20061218170217.B2973-100000@vision.moundalexis.com> 18 December 2006 ; Times Online (UK) Delta's market value to eclipse US Airways bid http://business.timesonline.co.uk/article/0,,9077-2510833,00.html --- BY James Doran, New York Delta Air Lines, the bankrupt US carrier, expects to attract a market value as great as $12 billion when it emerges from Chapter 11 protection, dwarfing the $8.4 billion takeover bid tabled by rival US Airways. The airline is set to reveal a prospective market valuation between $10 billion and $12 billion in a long awaited reorganisation plan, which is expected to be filed at bankruptcy court tomorrow (Tuesday). The range is lower than a previous estimate, which aimed to value the company between $12 billion and $14 billion post bankruptcy, but the lower end is still much higher than the value placed by US Airways hostile bid. Delta declined to comment about the prospective filing. Philip Baggaley, airlines analyst with Standard & Poor, the credit rating agency, said: "It would be hard for Delta's management to make a case if they can't suggest a higher valuation." The American airlines sector is caught up in a wave of consolidation. Continental and UAL, the parent of United Airlines, last week started talks that could lead to a merger, while many other big carriers have retained investment banks to advise on mergers and acquisitions. From usairways at vision.moundalexis.com Tue Dec 19 12:17:04 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 19 Dec 2006 07:17:04 -0500 (EST) Subject: [US Airways] US Airways May Bid Higher for Delta Message-ID: <20061219071656.K2973-100000@vision.moundalexis.com> 19 December 2006 ; Houston Chronicle US Airways May Bid Higher for Delta http://www.chron.com/disp/story.mpl/ap/fn/4411151.html --- By HARRY R. WEBER AP Business Writer ATLANTA -- US Airways is willing to increase its $8.4 billion bid for Delta Air Lines Inc. if Delta can justify that it is worth more, an official with knowledge of US Airways' plans told The Associated Press on Monday. The official, who spoke on condition of anonymity because of the sensitivity of the talks, said US Airways first needs to see how much Atlanta-based Delta values itself at in its reorganization plan, which it could file with the bankruptcy court as early as Tuesday, and whether any other airline makes a bid for Delta. US Airways is eager to get a look at Delta's books to analyze how much if at all to increase the unsolicited offer, which was first disclosed Nov. 15, the official said. A Delta spokeswoman declined to comment Monday on the timing of when Delta will file its reorganization plan, which some observers believe could value Delta at more than US Airways' current offer. Tempe, Ariz.-based US Airways Group Inc. has always "anticipated" the possibility of having to increase its offer and was not trying to buy Delta Air Lines Inc. "on the cheap," the official said. As of last week, no other carrier had offered to buy Delta since US Airways' hostile bid, and no merger discussions between Delta and any other carrier have been ongoing, the head of Delta's pilots union said Wednesday. The pilots union is a large creditor in Delta's bankruptcy case and is a member of the unsecured creditors committee, a key player in determining whether any merger would go forward. A few hours after the union chairman's comments, Delta's pilots held a rally near Atlanta to protest US Airways' bid. Nearly 3,000 people attended. Delta management also has opposed a merger. Delta's creditors committee was scheduled to meet later that day in New York to discuss the airline's proposal to remain a standalone carrier. Last Tuesday, lawyers for the Delta creditors committee said in a bankruptcy court filing there is no guarantee that US Airways' buyout offer of Delta will ever be consummated, but it surely will fall through if the pilots' pension plan at Delta is not terminated. The committee said in court papers that its consideration of the deal is still in the early stages, but that US Airways has made clear it would walk away without the pilots' pension being dumped. The remarks were made in a filing in which the committee asked the bankruptcy court to deny a request by some retired Delta pilots to stay the court's earlier approval of the pension termination pending further appeal. A federal district judge has upheld the bankruptcy court's approval. US Airways shares fell 70 cents, or 1.2 percent, to close Monday at $55.80 on the New York Stock Exchange. From usairways at vision.moundalexis.com Tue Dec 19 12:18:28 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Tue, 19 Dec 2006 07:18:28 -0500 (EST) Subject: [US Airways] Would air mergers help or hurt fliers? Message-ID: <20061219071816.H2973-100000@vision.moundalexis.com> 19 December 2006 ; USA Today Would air mergers help or hurt fliers? http://www.usatoday.com/travel/flights/2006-12-18-merger-impact-usat_x.htm --- By Dan Reed The U.S. airline industry may be on the verge of the fourth major round of consolidation since deregulation 28 years ago. US Airways (LCC), the USA's seventh-largest carrier, has an offer pending for No. 3 Delta Air Lines. Glenn Tilton, the CEO at No. 2 United Airlines (UAUA), talks enthusiastically about the benefits of industry consolidation and says his company is looking at merger opportunities. And some smaller players want to get larger. AirTran (AAI) so far has been rebuffed in efforts to take over tiny Midwest Airlines (MEH), but the quest by the Atlanta-based discounter may not be finished yet. You can get a good argument started over whether airline mergers are good or bad for consumers. But every large airline that was around at the time of the landmark industry deregulation has been through at least one merger or major deal in which it acquired significant assets from another carrier. Even Southwest Airlines (LUV), the discounter that now carries more passengers a month than any other airline, has bought two small rivals, Muse Air and Morris Air. Three major waves of consolidation have followed passage of the Airline Deregulation Act of 1978: one in the early 1980s, another started in the late 1980s and a third started in the late 1990s. America West's 2005 acquisition of the old US Airways in bankruptcy, a deal in which the surviving carrier retained the US Airways name, could prove to be the first deal of the fourth such wave. Whether another merger wave materializes seems to depend in large part on whether US Airways now can overcome resistance from Delta management and acquire the Atlanta-based carrier in bankruptcy. "Without the catalyst of a US Airways-Delta merger, nothing may happen at all," says airline consultant Darryl Jenkins, a researcher and lecturer at Embry-Riddle Aeronautical University. Here's the consumer stake in the potential wave of airline industry mergers: Fares: Could go up, could go down Even without significant restructuring, the airline industry has been raising average fares at a double-digit annual rate. Fueling the increase: continuing strong demand from travelers and limited growth of flying capacity. The potential effect on fares of industry consolidation is a matter of dispute. Kevin Mitchell, head of the Business Travel Coalition, an advocacy group that works on behalf of corporate travel departments, worries that fliers, especially business fliers, would have to pay more. Merged airlines could more easily hold down the supply of airline seats, putting upward pressure on fares, he says. Rolfe Shellenberger, an airline marketing expert and corporate travel cost-control consultant, says such an analysis ignores today's market realities. "If there's a vacuum left in any market by the super-big carriers reducing capacity, somebody will come in and fill it," he says. "Everybody forgets that airline assets, unlike factories, are portable." Clifford Winston, an economist and scholar at the Brookings Institution in Washington, D.C., adds to Shellenberger's argument. Consolidation may even deliver lower fares in some markets, he says. As a carrier withdraws or cuts back in a market as a result of a merger, he says, other carriers will fill the void. "Who you get coming in may be better than what you had before," Winston says. Service: 'Mergers are messy things' The new US Airways provides an example of the service problems that can vex the regular customers of an airline involved in a merger. Before the merger, America West was a top performer in the U.S. Department of Transportation's customer service ratings. But the new US Airways' ratings generally have been closer to those of the old US Airways in mishandled bags, late flights and consumer complaints: among the lowest of the big airlines. "Mergers are messy things," consultant Jenkins says. "Wall Street usually wins in these deals, at least early on. In some cases, they work out OK for consumers long term. But there's no guarantee of that." If discount carriers move into or expand in markets where merged megacarriers cut back service, things will change for local travelers. No two low-fare carriers operate exactly the same way, but neither do they behave like the big network carriers. In some cases, the option of traveling in first class could be lost or reduced. Southwest and JetBlue, for instance, fly one-class cabins. The size and scope of a newcomer's frequent-flier program would likely be less than the megacarriers' frequent-flier programs. And access to international destinations could be altered. Those traveling to or from small and midsize cities might have to connect via different U.S. gateways and use different carriers. Winston, the Brookings economist, says those things may not be as disruptive as they seem. Take the proposed US Airways-Delta deal. Travelers in at least two-dozen Eastern and Southeastern cities -- most of them relatively small -- would see their air travel options significantly reduced by the merger. But, he says, options in large markets would remain plentiful. "People lose sight of where the real action is," Winston says. "The top 50 to 75 routes are where all the travelers are." Stability: Consumers could benefit, or not The industry's latest move toward consolidation comes as domestic carriers are poised to turn their first collective profit since 2000. A rising economic tide partly explains the newly found profitability. But carriers cut costs deeply over the period, and in doing so, changed the travel experience. Fewer workers are taking reservations and handling bags. Complimentary meals have nearly vanished. Pro-consolidation airline executives such as US Airways CEO Doug Parker argue that the relative financial stability of merged megacarriers would benefit consumers in a variety of ways, including improved customer service and reliability and smoother connections to any destination on the globe. But Shellenberger, who a quarter century ago managed the creation of American's loyalty program, says there's no reason to think that merged airlines, with higher-than-average operating costs, would be anymore stable than their predecessor high-cost airlines. He says their business model "simply does not work well for the consumer." "Over time, consumers will find alternatives that don't require them to connect through hubs and sit in middle seats while paying too-high prices." From usairways at vision.moundalexis.com Wed Dec 20 22:06:59 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Wed, 20 Dec 2006 17:06:59 -0500 (EST) Subject: [US Airways] Delta files stand-alone Chapter 11 plan Message-ID: <20061220170644.J2973-100000@vision.moundalexis.com> 20 December 2006 ; Houston Chronicle Delta files stand-alone Chapter 11 plan http://www.chron.com/disp/story.mpl/ap/business/4412351.html --- By HARRY R. WEBER AP Business Writer ATLANTA -- Delta Air Lines filed a reorganization plan Tuesday that calls for it to emerge from bankruptcy next spring as a stand-alone company worth as much as $12 billion, or slightly more than the combined market value of the nation's two biggest carriers. The Atlanta-based company also said that its board has formally rejected US Airways' $8.5 billion hostile takeover bid, and its executives joined rank-and-file employees on a full-scale public relations assault against the proposal. "US Airways is the worst of all potential merger partners," Delta Chief Executive Gerald Grinstein said during a conference call with analysts. US Airways responded several hours later, saying it will continue to fight for its proposal. "We will not be distracted by emotional or irrational arguments; there is simply too much at stake to lose sight of what is really important," US Airways Chief Executive Doug Parker said in a memo to his employees. Grinstein didn't completely dismiss the idea of a merger with a company other than US Airways, saying Delta would review any other bids. But he said Delta would not put out a "for sale" sign. Delta's chief financial officer, Ed Bastian, said the company so far has not received any other offers. Delta outlined a five-year business plan. Its advisers estimated that a reorganized Delta will have a consolidated equity value of $9.4 billion to $12 billion and that Delta's unsecured creditors would recover roughly 63 percent to 80 percent of their allowed claims. The high end of the equity value Delta is projecting would be more than the $11.9 billion in combined market value of AMR Corp.'s American Airlines and UAL Corp.'s United Airlines. Delta's existing stock would be wiped out under the plan and creditors generally would receive distributions of new Delta common stock to settle their claims. Delta so far has not decided whether to give creditors any cash. US Airways' offer included $4 billion in cash and 78.5 million shares of US Airways stock. Tempe, Ariz.-based US Airways Group Inc. issued a statement saying it believes its proposal, including $1.65 billion in anticipated cost savings, provides more value than Delta's plan. "We remain a disciplined and determined bidder for Delta," Parker said. An official with knowledge of US Airways' plans who spoke on condition of anonymity because of the sensitivity of the talks said Monday that US Airways was willing to increase its offer if Delta could justify it is worth more. Creditors must now vote on whether to approve Delta's reorganization plan or any competing plan that may be filed with the court. The plan also must be approved by the court. Typically, in each class of creditors, Delta's plan would have to be approved by holders of two-thirds of the claims and a majority of the number of individual creditors, said New York bankruptcy lawyer William Rochelle. If a class is not impaired _ that is, if they are guaranteed of getting all of their money back no matter what _ they generally don't get to vote, Rochelle said. If one or more classes of creditors do not approve the plan, Delta could still confirm the plan through a so-called cramdown, a maneuver in which it must show the court that the dissenting class will receive more under the plan than it would under a Chapter 7 liquidation, Rochelle said. The company also would have to show that any subordinate class, such as shareholders, would get nothing in the way of recovery under the reorganization plan, Rochelle said. Delta already has met that second test because its plan calls for current shares of the company to be wiped out. If a competing plan were filed, creditors would vote on each individually. There have been bankruptcy cases where two competing reorganization plans were approved by creditors; in such a case, a judge decides which plan is confirmed after holding a hearing to determine which plan is in the "better interest" of the creditors. Ultimately, the unsecured creditors committee in the bankruptcy case will play a key role in determining Delta's fate. The committee has not said whether it will support Delta's plan, US Airways' plan or any other offer to buy Delta that may come in. A lawyer for the committee, Daniel Golden, did not immediately return a call Tuesday seeking comment. Rochelle said Delta would likely wait to hear from the creditors committee about its views before soliciting votes on its plan. Delta employees held rallies Tuesday at airports serving several cities, including Cincinnati, Boston and Columbia, S.C., protesting US Airways' bid, which was first disclosed Nov. 15; Delta executives attended a similar rally in Atlanta. US Airways shares rose $1.70, or 3.1 percent, to close at $57.50 Tuesday on the New York Stock Exchange, putting the value of its bid for Delta at $8.5 billion. Delta said it believes the US Airways deal is not likely to gain regulatory approval. It also cited as obstacles: overwhelming labor issues and "flawed economic assumptions." Bastian said Delta showed its reorganization plan to its creditors committee last week. He would not say how creditors specifically reacted, but he said he believes the committee will ultimately support Delta's plan. Delta said US Airways continues to experience significant integration problems with its prior, smaller deal with America West. It believes US Airways is not equipped to simultaneously integrate a substantially larger company like Delta. Bastian also said that the government's pension insurer is expected to give the final go-ahead Wednesday to Delta terminating its pilots' pension plan. The termination would be effective Sept. 2 and would mean the Pension Benefit Guaranty Corp. would take over the pilot pension plan and pay retired pilots a benefit up to a certain limit. Delta said its business plan projects, among other things, a 50 percent reduction in net long-term debt and a return to profitability in 2007 and an increase in net income, after profit-sharing, from roughly $500 million next year to roughly $1.2 billion in 2010. Delta filed for Chapter 11 in New York in September 2005. Delta said its reorganization plan calls for rolling its bankruptcy financing of $2.1 billion into a new package that would go into effect when it emerges from Chapter 11, and it said it has received several proposals with competitive terms to help it do that. There has been no decision about who will lead Delta once it emerges from bankruptcy, Bastian said. Delta's current chief, Grinstein, has said he plans to leave Delta around the time it exits bankruptcy. From usairways at vision.moundalexis.com Thu Dec 21 12:26:44 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Thu, 21 Dec 2006 07:26:44 -0500 (EST) Subject: [US Airways] US Airways reaches labor deal with dispatchers Message-ID: <20061221072637.M2973-100000@vision.moundalexis.com> 21 December 2006 ; Reuters US Airways reaches labor deal with dispatchers http://today.reuters.com/business/newsArticle.aspx?type=basicIndustries&storyID=nWEN1484 --- LOS ANGELES (Reuters) - US Airways Group (LCC.N) said on Wednesday that it has reached an agreement with the Transport Workers Union to include former America West dispatchers in the labor agreement covering US Airways dispatchers. The company also said an interim training agreement was reached outlining terms under which employees will be trained in anticipation of a single Federal Aviation Administration operating certificate in mid-2007. From usairways at vision.moundalexis.com Fri Dec 29 12:37:30 2006 From: usairways at vision.moundalexis.com (Daily US Airways News) Date: Fri, 29 Dec 2006 07:37:30 -0500 (EST) Subject: [US Airways] US Airways CEO: No increase to $8.4B Delta offer right now Message-ID: <20061229073722.G2973-100000@vision.moundalexis.com> 29 December 2006 ; St. Louis Post-Dispatch US Airways CEO: No increase to $8.4B Delta offer right now http://www.stltoday.com/stltoday/business/stories.nsf/0/9830B288FCF04BF98625725300122DD6?OpenDocument --- By Harry Weber THE ASSOCIATED PRESS US Airways has no intention right now of increasing its $8.4 billion offer for Delta Air Lines; and it can't see itself backing out of its pursuit of Delta for any reason, Chief Executive Doug Parker said Thursday. In a telephone interview, Parker said US Airways Group Inc. firmly believes its offer for Atlanta-based Delta Air Lines Inc. provides more value than Delta's stand-alone plan. "We believe our offer is more than fair and don't feel any need to amend it at this point," Parker said. However, Parker did not exactly rule out the possibility of changing his mind about the price. "If these conversations move to negotiations about value, we're happy to have those conversations," Parker said. "We have not had those types of conversations yet." Asked if there is any way US Airways, based in Tempe, Ariz., would drop its hostile bid for Delta absent Delta's creditors' committee saying it wasn't interested, Parker indicated he didn't see any. "We think this is such a unique opportunity that we have an obligation to pursue it and because of that obligation we will pursue it, and believe we will be successful," Parker said. "So, no, I can't envision any scenario where we simply say, 'We change our mind. We don't think there's the value here and we're going home.'"..." Delta had no immediate response to Parker's comments. Lawyers for Delta, the nation's third-largest carrier, said Wednesday they have scheduled a hearing Feb. 7 in bankruptcy court to consider approval of the disclosure statement to the carrier's stand-alone reorganization plan. The statement includes details of Delta's operations. If the statement is approved, Delta can begin soliciting votes on the reorganization plan, a process that typically takes four to eight weeks, Freitag said.