TEMPE, Ariz., Jan. 31 /PRNewswire-FirstCall/ -- US Airways (NYSE: LCC)today withdrew its offer to merge with Delta Air Lines Inc. (OTC: DALRQ). The airline was informed earlier today that the Official Unsecured Creditors' Committee would not meet its demands by the airline's established deadline of Feb. 1, 2007. As previously announced, US Airways' offer of
US Airways Chairman and Chief Executive Officer Doug Parker stated, "We are disappointed that the Committee, which has been chosen to act on behalf of all Delta creditors, is ignoring its fiduciary obligation to those creditors. Our proposal would have provided substantially more value to Delta's unsecured creditors than the Delta stand-alone plan. We would have created a better and more financially stable airline that offered more choice to consumers and increased job security to its employees. Our merger would have been able to be consummated in a reasonable time-frame and we would have been able to obtain all requisite regulatory approvals.
"The publicly traded bonds of Delta have fallen precipitously since rumors of this Committee decision were leaked last week, reducing the implied market valuation of what Delta's unsecured creditors can expect to recover in these cases by over
Mr. Parker added, "At US Airways, we are extremely confident in our own stand-alone plan. Earlier this week, we announced a 2006 profit (excluding charges) of over
US Airways is the fifth largest domestic airline employing nearly 35,000 aviation professionals worldwide. US Airways, US Airways Shuttle and USAirways Express operate approximately 3,800 flights per day and serve more than 230 communities in the U.S., Canada, Europe, the Caribbean and Latin America. The new US Airways -- the product of a merger between America West and US Airways in September 2005 -- is a member of the Star Alliance, which provides connections for our customers to 841 destinations in 157 countries worldwide. This press release and additional information on US Airways can befound at www.usairways.com. (LCCG)
Forward Looking Statements
The airline expects to take delivery of the five new aircraft from Airbus through 2011 and induct the two aircraft from ILFC in 2009.
Will swap slots with US Airways
Delta and its creditors may see a post-bankruptcy link-up with Northwest as a better alternative to the US Airways bid.