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
Kittipong Prapattong’s Plan for Thailand’s Tourism Growth: Taxes, Visas, and Campaigns
James Jin: Didatravel’s Journey from China to Global Reach and the Impact of AI on Travel
Darien Schaefer on Pensacola’s Evolution: From Small Town to Global Destination
Florida Tourism’s Next Frontier: Dana Young on Expanding Beyond the Classics
Patrick Harrison on Tampa Bay Tourism’s Resilience and Marketing Strategy
Bubba O’Keefe on Clarksdale’s Vibrant Music Scene
Commemorating Elvis and Embracing Tupelo’s Culture with Jennie Bradford Curlee
Craig Ray and the Expansion of the Blues Trail
Presenting Mississippi’s Cultural Trails with Katie Coats
Robert Terrell: A Journey Through BB King’s Influence
Rochelle Hicks: Celebrating Mississippi’s Musical Legacy
Exploring Jacksonville with Katie Mitura: The Flip Side of Florida
Dozens fall ill in P&O Cruises ship outbreak
Boy falls to death on cruise ship
Turkish Airlines flight in emergency landing after pilot dies
Unexpected wave rocks cruise ship
Woman dies after going overboard in English Channel