TEMPE, Ariz. (AFX) - US Airways Group Inc. said Tuesday it will continue to seek a merger with Delta Air Lines Inc., which earlier in the day said it prefers to remain a standalone carrier.
US Airways Chairman and Chief Executive Doug Parker said his $8.6 billion cash-and-stock bid offers better value than Delta's standalone reorganization plan, when taking into account potential cost savings. Delta is operating in Chapter 11 bankruptcy protection, and US Airways says a merger would allow the combined company to cut some capacity.
'We remain a disciplined and determined bidder for Delta,' Parker said in a statement. 'We continue to work productively with the Creditors Committee and the Ad Hoc Bondholders Committee.'
Delta's creditors will vote on whether to approve Delta's reorganization plan or any competing plan that may be filed with the court. The plan also must be approved by the court.
Delta earlier in the day said its standalone plan offers 'superior value and greater certainty on a much faster timetable than the US Airways proposal.'
US Airways shares gained $1.24, or 2.2 percent, to $57.02 in afternoon trading on the New York Stock Exchange.
Delta shares dropped 4 cents, or 2.7 percent, to $1.43 in over-the-counter trading. Delta said its reorganization plan would wipe out its existing stock.
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