USAirways (Including Delta merger)

[panda-k-bear]

The Beeb is reporting that USAirways is looking at an "$8 billion" merger with Delta.... watch this space as more news comes in. Surely this would create a mega-carrier of gargantuan proportions never before seen as Am West, USAirways and Delta, with all of their baggage, diverse fleets and management structures try to tie up.

Biting off more than they can chew? What does it mean for the people on the ground (so to speak)?

[jondc9]

if usair has the $ to buy delta, then they should use the same money to honor broken pension promises!

[ORAC]

CNN: US Airways launches takeover bid for Delta

[20driver]

US Air -Delta

Classic airline management strategy - get ever so slightly out of the do-do and then do something big to jump back in. I really feel sorry for anyone who works for a US airline.
20driver

[StbdD]

US Airways Proposes $8 Billion Delta Air Takeover

US Airways Group Inc., formed by the merger of two carriers a year ago, proposed to take over Delta Air Lines Inc. in an $8 billion combination that would create the world's second largest airline when Delta emerges from bankruptcy.

Delta's creditors would receive $4 billion in cash and 78.5 million shares of US Airways worth about $4 billion based on the stock's closing price yesterday, US Airways said in a statement today. The proposal comes 14 months after US Airways combined with America West Holdings Corp. to emerge from its own bankruptcy.

http://www.bloomberg.com/apps/news?p...ECY&refer=home

[er340790]

Sadly yes. A likely short-term bonanza for Merger & Acquisitions specialists, restructuring consultants and accountants. Result - an ungainly monster riven with old loyalties and rivalries - back in Ch11 within two years.

[goldeneye]

More on merger from BBC News

[LHRKLBD]

So if they merge how will the alliances work i.e

US Airways - Star Aliance
Delta - Sky Team

Would it stay as it was or would they both be on the same alliance ?

[skyboy1919]

I think the merger will be another name lost in the American Aviation Industry which I think is always sad, but worse is the likehood that jobs will be lost,, or am I just being a pessimist?

[Robertkc]

Originally Posted by LHRKLBD

So if they merge how will the alliances work i.e
US Airways - Star Aliance
Delta - Sky Team

They've said that the combined entity (if the deal goes through) will speak with both SkyTeam and StarAlliance and make a decision to go with one or the other at that time.