Delta Creditor's Committeel May Ask US Airways to Extend Deadline

[USA320Pilot]

Delta Panel May Ask US Airways to Extend Deadline (Update1)

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Meanwhile, at Wednesday's Senate Airline Industry Consolidation hearing had normal political overtones, but one key point often times over looked by the news media was a comment from the U.S. government's Executive Branch.

Accoding to the Arizona Republic, "An encouraging sign at the hearing, for those in favor of mergers, were the comments of Andrew Steinberg, an assistant secretary with the U.S. Department of Transportation. He repeatedly downplayed the doomsday scenario Delta was trying to paint, although not commenting specifically on the proposed Delta/US Airways deal. "There's no one-size-fits-all way to view airline mergers," he said. "I think we have to keep an open mind to any and all proposals."

If the creditor's committee sides with US Airways Congress will have no say in whether or not the proposed merger would poroceed, which makes comments like those made by Steinberg more important to consider when handicapping whether or not the merger will proceed.

Regards,

USA320Pilot

 

[abe]

If the creditor's committee sides with US Airways Congress will have no say in whether or not the proposed merger would poroceed, which makes comments like those made by Steinberg more important to consider when handicapping whether or not the merger will proceed.

Regards,

USA320Pilot[/font]

That's true "on paper" USA, but we all know that Washington can be a crazy place. Democrat controlled Congress...No real support for this plan inside the beltway (at least none I have heard).....and not only Democrats, but all of the Republicans are against it!

Even McCain, who normally might be with Parker on this, is smartly keeping his mouth shut as he looks towards the big prize in '08.

None of this really matters, IMO. This deal will either fly or die at the creditor level.

It doesn't look real good for Parker right now, but stranger things have happened!

In any case, good luck to us all!

Abe

 

[USA320Pilot]

Abe,

I agree. If the majority of the creditor's decide they want the deal than it will proceed. If not, it will not proceed.

My interest is that if it does proceed we can become a team to be the "best damn" airline in the business.

Regards,

USA320Pilot

 

[brokenwrench]

Senator urges 'vigor' in U.S. airline reviews
Thu Jan 25, 2007 5:46 PM ET
By Julie Vorman

WASHINGTON, Jan 25 (Reuters) - The Democratic head of a U.S. Senate antitrust subcommittee expressed concern on Thursday about US Airways Group Inc.' <LCC.N> takeover offer for Delta Air Lines <DALRQ.PK>, and urged the Justice Department to closely examine any agreement.

US Airways has proposed a takeover of bankrupt Delta in a deal valued at around $9.8 billion. Delta management opposes the plan.

"Irrespective of whether the offer by US Airways results in a proposed merger that is formally reviewed by the department, we do feel it appropriate to underscore our firm expectation that the department will investigate this or any other merger among airlines of all sizes with all due care and vigor," Sen. Herb Kohl, a Wisconsin Democrat who is chairman of the Senate Judiciary Committee's antitrust panel, said in a letter.

The letter, addressed to U.S. Attorney General Alberto Gonzales, was also signed by the subcommittee's ranking Republican, Orrin Hatch of Utah.

The two senators said any airline merger review by the Justice Department's antitrust division would set a precedent for future mergers in the airline industry.

Kohl and Hatch said their antitrust subcommittee would pay "significant attention" to any airline merger deals.

"From what we are able to glean from publicly available information, there appears to be even more overlap between the US Airways and Delta route networks," the letter said.

"Their merger would appear to result in a significant increase in concentration -- especially on routes serving smaller communities -- and could adversely affect Delta's hubs, as well as lead to a reduction in capacity and higher overall fares," the letter said.

On Wednesday, the Senate Commerce Committee heard testimony from the chief executives of US Airways and Delta at a hearing on airline mergers. Some lawmakers expressed concern the takeover could lead to cuts in service at smaller cities and more industry consolidation.



Please do not respond saying the DOJ has no say in this "only the creditors."

 

[757inthebarrel]

Abe,

I agree. If the majority of the creditor's decide they want the deal than it will proceed. If not, it will not proceed.

My interest is that if it does proceed we can become a team to be the "best damn" airline in the business.

Regards,

USA320Pilot

Parker admitted during his Senate testimony that he would rather not be trying the takeover but was doing so at the direction of his masters (read banks and hedge funds). This is a bad deal for all involved except banks, hedge funds, and bondholders. It will not make us the "best damn" airline in the business. It will make us the most debt ridden. It will force others to merge and leave us with gapping holes in our route structure and vultures feasting on our divested routes and facilities.

Unfortunately, there will probably be an extension of the deadline as Parker and posse will grasp at any sign of interest from the creditors. This will be another of his promises that will go down the drain just as the others he's made will go down the drain if the takeover is allowed.

 

[brokenwrench]

I agree 100%

 

[abe]

What he said!

Despite the repeated warnings from people on this board about the fragmentation of Delta (warnings that have no basis in fact, by the way), I'll take my chances with Jerry, for now....(or maybe Gordon?)

Abe

 

[brokenwrench]

Much better for DL employee that way and if DP and Company decide to run an airline it will be much better for the the US employee.

Not as good for some bond holders but then I really do not care. Or I should say I care for them about as much as "Wall Street" cared when hundreds of thousands of men and women saw there pensions stripped.

This deal is DEAD!

 

[Gilding the Lily]

Parker admitted during his Senate testimony that he would rather not be trying the takeover but was doing so at the direction of his masters (read banks and hedge funds).

757,

I have read Parker's prepared statement for the Senate hearing and I also read the statements and Q & A session held during the hearing of the Senate Committee on Commerce, Science and Transportation regarding "the potential impact of airline mergers and airline consolidation."

What I did not read was any indication, as you mentioned, that Parker admitted that "he would rather not be trying the takeover but was doing so at the direction of his masters." Can you please let me know where in his testimony he mentioned that?

The transcripts are very lengthy, so it is possible that I overlooked it... but I do find the statement a bit suspicious, as everything else I read in the transcripts indicated that Parker was quite enthusiastic about attempting the deal.

 

[longing4piedmont]

Abe,


My interest is that if it does proceed we can become a team to be the "best damn" airline in the business.

Regards,

USA320Pilot

B.O.B.

With your management team that's the only way you will become the "best Damm" airline because they certainly do not know how to grow one or run the TWO they have.

Oh and let's not forget that you also know that it is the only way you will ever get to fly the "big" birds.

This deal is DEAD!

NO, NO, NO it's not....at least not until the B.O.B says it is.