An Important Message from Doug Parker
Posted by News Staff - Just Plane News.com on 12/19/2006 at 06:32 PM
Dear US Airways Employees:
By now you have likely read news coverage of Delta’s Plan of Reorganization, which was released publicly earlier today. Also today, Delta’s Board of Directors formally rejected our merger proposal and I have received a letter from Jerry Grinstein, Delta’s CEO, communicating this information.
Today’s announcement comes as no surprise to us, and based on Delta’s public comments and actions after our proposal was communicated to them last month, will likely not come as a surprise to anyone else either. Delta’s executives have been adamant about their desire to emerge as a standalone company in spite of having recently had the opportunity to compare value returned by a merged airline versus a standalone airline (US Airways vs. United). While we are disappointed that Delta has not yet accepted our request to start a due diligence process, we believe the Delta Creditors Committee and other stakeholders will ultimately insist that this process occur before selecting any go-forward plan.
Delta’s standalone plan and ensuing public comments do not alter our belief that a combined airline creates far more value than a standalone plan. Our merger proposal, which we estimate would create $1.65 billion in annual synergies that are not achievable in a standalone plan, simply provides greater value than Delta estimates for its plan. (Editor’s Note: A separate For the Record explaining valuation is coming shortly…so gather the kids, pop some popcorn and settle in for a great read!)
While the market attempts to digest Delta’s announcement, assumptions and valuation forecasts, we will remain steadfast in our resolve to return maximum value to our shareholders and to Delta’s stakeholders. We will not be distracted by emotional or irrational arguments; there is simply too much at stake to lose sight of what is really important.
We will continue to work with the Creditors Committee and other stakeholders in a methodical and deliberate process to ensure that the best go-forward plan prevails, and we will do so while adhering to the guiding principles that have led us thus far. These include communicating openly and honestly with all of our stakeholders; demonstrating continued respect for the people of Delta; and working with Delta’s creditors as they are ultimately the decision-makers for Delta’s future. Because of the $1.65 billion in synergies, we remain confident that our merger proposal will ultimately prevail.
As always, please keep an eye on Compass, theHub and company communications as we examine the Delta standalone plan and respond when appropriate. Keep those questions coming too, and those can be sent to [email protected].
Lastly, in the days ahead, thank you for taking care of our customers as they travel to visit family and friends. We have the privilege of carrying a large number of passengers over the next two weeks and your efforts to ensure our airline runs on-time and delivers baggage when promised are appreciated. Thanks again, and happy holidays!
Doug.
"Make Delta Our Delta"
Posted by News Staff - Just Plane News.com on 12/19/2006 at 06:32 PM
Dear US Airways Employees:
By now you have likely read news coverage of Delta’s Plan of Reorganization, which was released publicly earlier today. Also today, Delta’s Board of Directors formally rejected our merger proposal and I have received a letter from Jerry Grinstein, Delta’s CEO, communicating this information.
Today’s announcement comes as no surprise to us, and based on Delta’s public comments and actions after our proposal was communicated to them last month, will likely not come as a surprise to anyone else either. Delta’s executives have been adamant about their desire to emerge as a standalone company in spite of having recently had the opportunity to compare value returned by a merged airline versus a standalone airline (US Airways vs. United). While we are disappointed that Delta has not yet accepted our request to start a due diligence process, we believe the Delta Creditors Committee and other stakeholders will ultimately insist that this process occur before selecting any go-forward plan.
Delta’s standalone plan and ensuing public comments do not alter our belief that a combined airline creates far more value than a standalone plan. Our merger proposal, which we estimate would create $1.65 billion in annual synergies that are not achievable in a standalone plan, simply provides greater value than Delta estimates for its plan. (Editor’s Note: A separate For the Record explaining valuation is coming shortly…so gather the kids, pop some popcorn and settle in for a great read!)
While the market attempts to digest Delta’s announcement, assumptions and valuation forecasts, we will remain steadfast in our resolve to return maximum value to our shareholders and to Delta’s stakeholders. We will not be distracted by emotional or irrational arguments; there is simply too much at stake to lose sight of what is really important.
We will continue to work with the Creditors Committee and other stakeholders in a methodical and deliberate process to ensure that the best go-forward plan prevails, and we will do so while adhering to the guiding principles that have led us thus far. These include communicating openly and honestly with all of our stakeholders; demonstrating continued respect for the people of Delta; and working with Delta’s creditors as they are ultimately the decision-makers for Delta’s future. Because of the $1.65 billion in synergies, we remain confident that our merger proposal will ultimately prevail.
As always, please keep an eye on Compass, theHub and company communications as we examine the Delta standalone plan and respond when appropriate. Keep those questions coming too, and those can be sent to [email protected].
Lastly, in the days ahead, thank you for taking care of our customers as they travel to visit family and friends. We have the privilege of carrying a large number of passengers over the next two weeks and your efforts to ensure our airline runs on-time and delivers baggage when promised are appreciated. Thanks again, and happy holidays!
Doug.
"Make Delta Our Delta"
