US Airways makes Bid for Delta Airlines
By Darren Cronian on Wednesday, November 15th, 2006

Delta Airlines have had a tough year with employee strikes, massive jet fuel prices, and the threat of bankruptcy – today this tough period continues with news that US Airways as announced an $8billion [£4.2 billion] hostile bid to buy Delta Airlines, and this has worried some travel rants readers.

US Airways makes Bid for Delta Airlines

Delta, which is operating under the protection of the bankruptcy court, has until February 15th to submit its plan to the Court to emerge from bankruptcy and reports suggest that Delta is not interested in a sale, but US Airways plans on moving forward with its offer to acquire the airline anyway.

To try and help with some consumer concerns I emailed Delta’s support services, and received a response within 20 minutes (very impressed!) and they have asked me to direct all travellers to the companies restructing page on the Delta website.


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5 responses to “US Airways makes Bid for Delta Airlines”

Carol Long-McDonald | 15 November, 2006 at 10:19 pm

I have just heard an interview with an Airline Expert - and he says Delta are not even looking at this “hostile bid” and intend to emerge from Chapter11 in Feb as a “stand-alone” airline.
This sounds very like Ryanair’s attempt to take over Aer Lingus, here in Ireland. Interesting times!!

Darren Cronian | 15 November, 2006 at 10:43 pm

Thanks to Paul for this email from US Airways:

Dear Dividend Miles Member,

By now you may have heard that US Airways has made a proposal to merge with Delta Air Lines. Over the coming days there will certainly be much discussion in the media about this proposal, and in advance of that I’d like to make clear our company’s motivation for initiating this process and explain how we believe it would provide enormous benefits for you, one of our frequent flyers.

The merger of America West and US Airways has provided us with a sound platform to grow our business and provide additional opportunities for our customers. We believe a merger with Delta is the right type of opportunity that can positively benefit all of our stakeholders – customers, employees, and investors. The combination will provide an even stronger base from which the merged airline can compete with other domestic and international airlines.

For you, our customer, there will be benefits similar to what you’ve already experienced with the new US Airways:

A much larger network of routes and frequencies to simplify your travel
A history of reducing fares and eliminating unfriendly fare rules like Saturday-night stays
A global frequent flyer program that would combine your Dividend Miles and Delta SkyMiles balances
Participation in one of the world’s largest airline alliances, opening up even more of the world for your travel
Peace of mind that you are building a travel rewards investment in a company that will be here for the long term, and that your miles will be here when you’re ready to redeem them
Of course, we don’t overlook the operational challenges inherent with this kind of transaction. Using our experience with the America West/US Airways merger we will work hard to mitigate transition difficulties, particularly with technology online and at the airports. In the short term we know there will be challenges, but in the long run you will be the beneficiary of one of the largest, most convenient airline networks in the United States, designed to make travel as efficient, economical, reliable and comfortable as possible.

This process will undoubtedly take some time to reach its conclusion, but please be assured that in the meantime our current integration processes are moving full speed ahead, including moving to one reservations system scheduled for early second quarter 2007. In addition, should this transaction fail to materialize, please be assured that the new US Airways is in a very good position, competitively and financially, to continue to build the best full-service, low-fare airline in the world.

Thank you again for your support of US Airways. We look forward to the opportunity to serve you again soon.

Sincerely,

Scott Kirby
President

Sarah | 15 November, 2006 at 11:48 pm

I can’t make up my mind if this is a good or bad merger.

Surely this will mean less competition = higher prices.

The good thing about travel in Europe is that we can book flights cheap because they are so many airlines we can use.

Nate | 28 November, 2006 at 12:51 am

Personally,
I think this is a horrible case

If US Airways gets Delta, it will surely make them one of the worlds largest airlines, thus creating major problems for airlines like United, American, jetBlue, etc. They won’t be able to keep up with US Airways/Delta’s fleet, routes, and prices…
they’d create a monopoly…

I really hope they don’t follow through,
it’d completely destroy Delta

Travis | 1 December, 2006 at 4:12 am

I think the city of Atlanta will do what it can to make sure Delta does not get bought out. They are a very big employer here and I cannot see Atlanta not being home to Delta.

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