Delta Rejects US Airways Bid

Delta Air Lines, US Airways December 20 2006 2 Comments

You can read much more about this elsewhere, but in case you didn’t see it (if you’re reading this site, though, you probably have seen it.  I’ll shut up now) Delta rejected US Airways’ buyout offer.  The most interesting reason given by Delta is that the merger would create monopoly power on 2,000 city pairs.  I would think this would be a good thing for an airline, as they could increase fares, but they’re saying that the merger would never pass Department of Justice scrutiny.  Look for US Airways to increase their offer, only to be rebuffed again.  My guess?  Delta will ultimately stay independent.

2 Responses on “Delta Rejects US Airways Bid”

  1. iahphx says:

    Yup, Delta threw everything except the kitchen sink at USAirways and while some of the barbs seem to have struck a cord with the media and local politicians, Wall St. has shrugged. The “antitrust card” is a particularly dangerous one for Delta to play as the shoe could easily be on the other foot sometime in the not-so-distant future. I’d also note that while Delta is whining that the USAirways plan would reduce seats to Podunk USA, Delta’s own exit plan calls for a 6% reduction in domestic capacity!

    Most damaging, however, is a “For the Record” press release put out by USAirways on Tuesday night which clearly shows that the calculations used by Delta to show the “superior value” of their plan are, well, bogus. We’ll see if anyone in the media is smart enough to run with this. You can read it yourself by clicking the 12/19/06 “For the Record” link on the right side of this USAirways web page:

  2. Jim zraiq says:

    When it comes to Delta you would always find thier prices the highest plus most of them nonstop.
    i would say if Southwest airline stick Delta in mind and compete with them and chase them where ever they go then Delta will become a history in the airline industry.
    in addition to that all of delta employees sound like they are just waiting for another chance to join another airline due to paycut,in other words other than getting free tickets for the employee nothing really worth from the salary to the health plan as will as thier pension plan.

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