United Kingdom
United States
Asia Pacific
Delta rejects USAirways takeover bid
Delta Air Lines has “unanimously rejected” an unsolicited bid from USAirways and detailed plans to emerged from Chapter 11 bankruptcy protection next spring.
The board of directors has concluded that Delta’s plan will provide creditors with superior value and greater certainty on a much faster timetable than the US Airways proposal, a statement said.
The airline has filed legal documents with the US Bankruptcy Court in New York after the board of directors “unanimously concluded” that its creditors and stakeholders are best served by moving forward with its standalone reorganisation plan.
Delta had considerably strengthened its financial condition as a result of its ongoing restructuring initiatives, according to the statement.
CEO Jerry Grinstein said: “Our progress over the past year attests to the strength of the Delta brand and the resolve of our 45,000 people who are transforming this company through their hard work.
“Delta is well along in the process of a top to bottom transformation –implementing changes that have made a vast improvement in our performance.
“Our plan for a fundamentally new and different airline is working and is creating real value. We will emerge as a thoroughly new Delta that will be a strong global carrier with a solid foundation for profitable growth in a highly competitive environment.”
US Airways’ chairman and CEO Doug Parker responded by saying: “We have always expected that Delta would file a standalone plan with the Bankruptcy Court.
“This plan will provide Delta creditors with a benchmark against which to evaluate the competing proposals and we welcome that comparison. This is an important step in a process that we believe will result in the merger of US Airways and Delta.
“Combining US Airways and Delta will create at least $1.65 billion in annual synergies beyond the value that could be created by any standalone plan.
“These synergies come on top of the certainty of $4.0 billion in cash and the upside potential of 78.5 million shares of US Airways stock. These shared synergies will benefit all shareholders in the ‘New’ Delta. Factoring the synergy benefits into our offer, the current value of our proposal is significantly greater than the value of Delta’s standalone plan.
“We remain a disciplined and determined bidder for Delta.”
Report by Phil Davies
Phil Davies
Tony from Gatto’s Pizza on Columbus’s Unique Pizza Trail
Sophia Hyder Hock on Global Social Inclusion in Tourism
Sustainable Tourism: Don Welsh on Community Values and Global Collaboration
Jane Cunningham: Enhancing European Engagement in Tourism
Kristin Dunne: Navigating Destination Strategy
Revolutionizing Mobile Connectivity: Boris Bijlstra on HUBBY eSIM
Capturing Glasgow’s Vibrancy: An Interview with Susan Deighan, Chief Executive of Glasgow Life
Lebua Hotel & Resorts: Rajan Khurana on Hospitality and Bangkok’s Charms
Sustainable Tourism and Growth: Insights from Chiravadee Khunsub from Tourism Authority of Thailand
Revolutionizing Travel: SmartSIM USA’s Dale Takio Unveils the Power of E Sims
TravelMole Interview with Hishan Singhawansa, Deputy CEO of Cinnamon Hotels & Resorts, Sri Lanka
Unveiling the Essence of Magari Tours: A Dive into Authentic Italian Experiences
EU airports bring back 100ml liquid rule
British Airways passengers endure 11-hour 'flight to nowhere'
CLIA: Anti-cruise demos could cause itinerary changes in Europe
Co-pilot faints, easyJet flight issues ‘red alert’
Gatwick braces for strike