USA320Pilot
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US Airways to increase Delta bid?
- Thread starter USA320Pilot
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Yeap I was thinking about a billion more....mortgage the whole LOT! Then we can be the worst and largest LCC on the planet.
D
delta777
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??? Money isn't the issue for the creditors according to the WSJ article i posted yesterday, it was Delta Management/DALPA being vehemenently opposed to such a deal.
Never mind the tongue lashing Doogie received from the Senate hearing today.
At one stage in the hearing, Lautenberg was loudly applauded by the several dozen Delta pilots present when he asked Parker why he didn't use the $5 billion in financing for the deal to pay down the deficits in US Airways' pension scheme.
Parker said the money was financing provided by investment banks Citigroup Inc. and Morgan Stanley, and was contingent on the Delta acquisition, rather than actually being on the company's books.
US Airways actually has roughly $8 billion in backing for the merger.
Parker was on the back foot again when asked by senators whether he would reinstitute the pension funds of US Airways staff.
The situation was compared to that at Delta where the pension rights of employees have been left largely intact despite the company entering bankruptcy and going through a major restructuring.
Parker responded that he couldn't afford to do so.
Desperate times call for desperate measures.
US1YFARE
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wow, you mean not even all the money he has saved the airline by using powdered creamer, cheap coffee, bad wine, horrible seat pitch, advertising on tray tables and anything else on the plane, reduction in first class cabin size, devaluation of the DM program, generic sweetner, never changing snack basket, no closets on the 320, 3 rosw of the A330 that are not usable, no glassware, chasing away the biz customer, and charging prices not reflective of the service can't bring back the pensions--I guess he's used that money to line his own pockets. B) Oh, and let's not forget a demoralized workforce that thankfully is the only one's who seem to appreciate the loyalty of some customers.
How much room to increase the bid does US Airways have? My guess is another billion in cash but I'm not sure the size of the bid is the primary concern of the creditors at this point.
ClueByFour
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Adding debt just means the second BK for "delta" will come sooner. The creditors know this (while looking at the equity portion of the deal).
IMisstheAladdinTrays
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Just a note, that sweetner is made by Dixie Crystal. This is the same company who makes "pink" sweetener for all the chain restaurants, that have there logo on the package. So we have all used it before! So bash all you want to bash...just lay off the sweetner!
usair_begins_with_u
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These assclowns are really something. The deal will significantly reduce competition and simply will not should not pass muster with the DOJ. I guess Doogie missed the day they talked about the Sherman Antitrust Act in MBA school.
CV580ETOPS
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The recession will be right about the time Iran decides to show off their new nukes in concert with N. Korea.
N965VJ
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Parker’s either really smart or really stupid.
Lets say this *merger*, as announced 11-15-06, gets approval. How could the DOJ not give the okay to other mergers after letting the US/DL route overlap go by?
In the ensuing industry-wide consolidation, US/DL would be at the bottom internationally.
Lets say this *merger*, as announced 11-15-06, gets approval. How could the DOJ not give the okay to other mergers after letting the US/DL route overlap go by?
In the ensuing industry-wide consolidation, US/DL would be at the bottom internationally.
RowUnderDCA
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Isn't that kind of extortion? I'm just asking, whose interest is DAL management supposed to be serving while in bankruptcy?
D
delta777
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Good point. I suppose if the creditors had a problem with it they would certainly let DAL management know.
RowUnderDCA
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hey, don't get me wrong, I'm neutral-to-slightly-anti.
But, I can smell hypocrisy. So, the deal would be fantastic, if only DAL management would cooperate? If that is a correct premise, whose interest does DAL's management serve? and is it appropriate for management of a corp in bankruptcy to serve those interests by pointing a metaphorical gun to the head of the proposal that would otherwise be good for creditors?
Hey, it's not my premise and I'm sticking to my original prediction that it won't happen.
But, I can smell hypocrisy. So, the deal would be fantastic, if only DAL management would cooperate? If that is a correct premise, whose interest does DAL's management serve? and is it appropriate for management of a corp in bankruptcy to serve those interests by pointing a metaphorical gun to the head of the proposal that would otherwise be good for creditors?
Hey, it's not my premise and I'm sticking to my original prediction that it won't happen.
BoeingBoy
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Isn't management's responsibility, as always, to do what they think is best for the company? Bankruptcy doesn't change that.
What bankruptcy does do is put someone in a position to look over management's shoulder and decide if what they're doing is also best for creditors - the judge. Of course, the presumption from the start is that a surviving company is better for the creditors than liquidating the compnay - otherwise there'd be no need for chapter 11 of the bankruptcy code.
As for the competing plans, that's where the unknowns lie. Once you get past the spin coming from both sides, no one knows which plan would ultimately be better for the creditors. I suspect, absent some pretty strong resistance from those creditors, the judge will go along with management's wishes. Until, that is, the unsecured creditors get the final say when they vote.
Jim
What bankruptcy does do is put someone in a position to look over management's shoulder and decide if what they're doing is also best for creditors - the judge. Of course, the presumption from the start is that a surviving company is better for the creditors than liquidating the compnay - otherwise there'd be no need for chapter 11 of the bankruptcy code.
As for the competing plans, that's where the unknowns lie. Once you get past the spin coming from both sides, no one knows which plan would ultimately be better for the creditors. I suspect, absent some pretty strong resistance from those creditors, the judge will go along with management's wishes. Until, that is, the unsecured creditors get the final say when they vote.
Jim
