US Airways + Delta = True?
11-15-2006, 03:49 AM
#1
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Joined APC: Mar 2006
Posts: 3,333
US Airways + Delta = True?
US Airways proposes to merge with Delta
Wed Nov 15, 2006 6:12am ET
LCC (US Airways Group Inc )
Last: $50.93
Change: -0.60 (-1.16%)
Revenue (ttm): $11,347.0M
EPS: -0.47
Market Cap: $4,523.15M
Time: 7:00pm ET
Company News:
RPT-US Airways proposes to merge with Delta
At the Helm:
W. Douglas Parker
Chairman of the Board, Chief Executive Officer
Salary: USD 550,000
Bonus: -
Age: 44
Mr. Parker has served as Chairman of the Board, President and Chief Executive Officer of US Airways Group and US Airways since September 27, 2005, the... Full Bio
Full Management Team
Insider Trading Email This Article | Print This Article | Reprints [-] Text [+]
NEW YORK, Nov 15 (Reuters) - US Airways Group, Inc. (LCC.N: Quote, Profile, Research) on Wednesday said it had made a merger proposal with Delta Air Lines Inc. (DALRQ.PK: Quote, Profile, Research) under which the companies would combine upon Delta's emergence from bankruptcy.
The proposal would provide about $8 billion of value in cash and stock to Delta's unsecured creditors, US Airways said. Delta creditors would receive $4 billion in cash and 78.5 million shares of US Airways stock with an aggregate value of around $4 billion based on Tuesday's closing stock price.
http://today.reuters.com/news/articl...c=66&type=qcna
Employee Information
A letter from Doug Parker
Dear US Airways Employee,
Are you sitting down?
I have some big news this morning that will surprise some, stun others and – I hope – spark the imagination and competitive spirit in all of us.
This morning we made a proposal to merge with Delta Air Lines. We’ve approached Delta and their creditors with an offer of approximately $8 billion in cash and equity that we would raise in the financial markets. If successful, we would become one of the world’s largest airlines and serve more than 350 destinations on five continents.
Before you ask the obvious question (Gee, Doug, does it really have to be about how big we are and shouldn’t it be more about how good our service/operation is?), let me ask you to step back a bit and look at the larger, long-term picture.
Of course, we have a lot of work right now as we finish our integration. Work continues on the reservations migration, operating certificate and labor contracts.
So while we would prefer that this opportunity wait for that work to be completed, the fact is the world is not going to wait for us. The industry is evolving. Opportunities to grow, expand our network and create a more secure future for our airline don’t come along very often. If we don’t take these opportunities when they present themselves, someone else will.
A lot of people were skeptical about the America West/US Airways combination. We’ve proven them wrong: we’re recalling employees and hiring new people, we’re hitting our integration goals and quickly fixing the inevitable problems that have cropped up during integration and we’re doing all of this profitably.
As a result, we’re a much more successful airline than many thought possible a year ago.
That kind of opportunity exists again for us. A US Airways/Delta combination will give employees a more stable global enterprise, well-positioned for long-term success, able to compete effectively with any type of carrier and better able to weather economic downturns and industry volatility.
Our new airline would have a market share of approximately 18 percent, just slightly larger than the current largest carrier. We would be the largest carrier across the Atlantic to Europe and have the second strongest position in the Caribbean.
Going forward, our transaction must be approved by Delta’s creditors, the bankruptcy court, government regulators and our own shareholders. There is always the possibility that this transaction might not be accepted or approved. Even so, it will be worth the effort.
The history of our business is one of seizing opportunities. We are capable of continuing our integration process while pursing a transaction that will only make our airline better for our customers, employees and shareholders.
Like many of our big announcements, I expect that this one will generate a lot of questions from you, your families, your neighbors and co-workers. We have lots of information on awaCompass and theHub. We’ve also distributed information to your department leaders, and we invite you to listen in to two webcasts today, at 8:15 a.m. EST and 9:35 a.m. EST, both reachable through usairways.com >> About Us >> Investor Relations >> Webcasts/Presentations/Updates.
We are also scheduling an employees-only webcast with me, for Thursday at noon Eastern Time, and will be sending instructions today and tomorrow for linking to that presentation.
Please send questions or comments to [email protected] and look for some of the most frequently asked and answered questions on awaCompass and theHub. I’ll also be out in the operation and visiting in Town Halls or other employee meetings, and I hope you’ll take the time to ask questions.
Thanks for all that you do.
Sincerely,
Customer Information
A letter from Doug Parker
Dear US Airways Customer:
By now you may have heard that US Airways has made a proposal to merge with Delta Air Lines. Over the coming days, there will certainly be much discussion in the media about this proposal and in advance of that, I’d like to make clear our company’s motivation for initiating this process and why we believe it will provide enormous benefits for you, our valued customers.
The merger of America West and US Airways has provided us with a sound platform to grow our business and provide additional opportunities for our customers. We believe a merger with Delta is the right type of opportunity that can positively benefit all of our stakeholders – customers, employees and investors.
You, our customer, will benefit from:
• A much larger network of routes and frequencies to simplify your travel
• The benefits of a low-cost structure with the amenities of large network carriers (first and business class service, for example; airline clubs and a global frequent flyer program that combines your Dividend Miles and Delta SkyMiles balances)
• Participation in one of the world’s largest airline alliances, opening up even more of the world for your travel
Our experience with the America West/US Airways merger in 2005 has taught us a quite a bit. Please be assured that our current integration is moving full speed ahead. Our customers will remain our number one focus during this process.
Thank you again for your support of US Airways. We look forward to the opportunity to serve you again soon.
Sincerely,
Doug Parker
Chairman and CEO
US Airways
http://www.usairways.com/awa/content...r/default.aspx
Wed Nov 15, 2006 6:12am ET
LCC (US Airways Group Inc )
Last: $50.93
Change: -0.60 (-1.16%)
Revenue (ttm): $11,347.0M
EPS: -0.47
Market Cap: $4,523.15M
Time: 7:00pm ET
Company News:
RPT-US Airways proposes to merge with Delta
At the Helm:
W. Douglas Parker
Chairman of the Board, Chief Executive Officer
Salary: USD 550,000
Bonus: -
Age: 44
Mr. Parker has served as Chairman of the Board, President and Chief Executive Officer of US Airways Group and US Airways since September 27, 2005, the... Full Bio
Full Management Team
Insider Trading Email This Article | Print This Article | Reprints [-] Text [+]
NEW YORK, Nov 15 (Reuters) - US Airways Group, Inc. (LCC.N: Quote, Profile, Research) on Wednesday said it had made a merger proposal with Delta Air Lines Inc. (DALRQ.PK: Quote, Profile, Research) under which the companies would combine upon Delta's emergence from bankruptcy.
The proposal would provide about $8 billion of value in cash and stock to Delta's unsecured creditors, US Airways said. Delta creditors would receive $4 billion in cash and 78.5 million shares of US Airways stock with an aggregate value of around $4 billion based on Tuesday's closing stock price.
http://today.reuters.com/news/articl...c=66&type=qcna
Employee Information
A letter from Doug Parker
Dear US Airways Employee,
Are you sitting down?
I have some big news this morning that will surprise some, stun others and – I hope – spark the imagination and competitive spirit in all of us.
This morning we made a proposal to merge with Delta Air Lines. We’ve approached Delta and their creditors with an offer of approximately $8 billion in cash and equity that we would raise in the financial markets. If successful, we would become one of the world’s largest airlines and serve more than 350 destinations on five continents.
Before you ask the obvious question (Gee, Doug, does it really have to be about how big we are and shouldn’t it be more about how good our service/operation is?), let me ask you to step back a bit and look at the larger, long-term picture.
Of course, we have a lot of work right now as we finish our integration. Work continues on the reservations migration, operating certificate and labor contracts.
So while we would prefer that this opportunity wait for that work to be completed, the fact is the world is not going to wait for us. The industry is evolving. Opportunities to grow, expand our network and create a more secure future for our airline don’t come along very often. If we don’t take these opportunities when they present themselves, someone else will.
A lot of people were skeptical about the America West/US Airways combination. We’ve proven them wrong: we’re recalling employees and hiring new people, we’re hitting our integration goals and quickly fixing the inevitable problems that have cropped up during integration and we’re doing all of this profitably.
As a result, we’re a much more successful airline than many thought possible a year ago.
That kind of opportunity exists again for us. A US Airways/Delta combination will give employees a more stable global enterprise, well-positioned for long-term success, able to compete effectively with any type of carrier and better able to weather economic downturns and industry volatility.
Our new airline would have a market share of approximately 18 percent, just slightly larger than the current largest carrier. We would be the largest carrier across the Atlantic to Europe and have the second strongest position in the Caribbean.
Going forward, our transaction must be approved by Delta’s creditors, the bankruptcy court, government regulators and our own shareholders. There is always the possibility that this transaction might not be accepted or approved. Even so, it will be worth the effort.
The history of our business is one of seizing opportunities. We are capable of continuing our integration process while pursing a transaction that will only make our airline better for our customers, employees and shareholders.
Like many of our big announcements, I expect that this one will generate a lot of questions from you, your families, your neighbors and co-workers. We have lots of information on awaCompass and theHub. We’ve also distributed information to your department leaders, and we invite you to listen in to two webcasts today, at 8:15 a.m. EST and 9:35 a.m. EST, both reachable through usairways.com >> About Us >> Investor Relations >> Webcasts/Presentations/Updates.
We are also scheduling an employees-only webcast with me, for Thursday at noon Eastern Time, and will be sending instructions today and tomorrow for linking to that presentation.
Please send questions or comments to [email protected] and look for some of the most frequently asked and answered questions on awaCompass and theHub. I’ll also be out in the operation and visiting in Town Halls or other employee meetings, and I hope you’ll take the time to ask questions.
Thanks for all that you do.
Sincerely,
Customer Information
A letter from Doug Parker
Dear US Airways Customer:
By now you may have heard that US Airways has made a proposal to merge with Delta Air Lines. Over the coming days, there will certainly be much discussion in the media about this proposal and in advance of that, I’d like to make clear our company’s motivation for initiating this process and why we believe it will provide enormous benefits for you, our valued customers.
The merger of America West and US Airways has provided us with a sound platform to grow our business and provide additional opportunities for our customers. We believe a merger with Delta is the right type of opportunity that can positively benefit all of our stakeholders – customers, employees and investors.
You, our customer, will benefit from:
• A much larger network of routes and frequencies to simplify your travel
• The benefits of a low-cost structure with the amenities of large network carriers (first and business class service, for example; airline clubs and a global frequent flyer program that combines your Dividend Miles and Delta SkyMiles balances)
• Participation in one of the world’s largest airline alliances, opening up even more of the world for your travel
Our experience with the America West/US Airways merger in 2005 has taught us a quite a bit. Please be assured that our current integration is moving full speed ahead. Our customers will remain our number one focus during this process.
Thank you again for your support of US Airways. We look forward to the opportunity to serve you again soon.
Sincerely,
Doug Parker
Chairman and CEO
US Airways
http://www.usairways.com/awa/content...r/default.aspx
Last edited by ⌐ AV8OR WANNABE; 11-15-2006 at 04:01 AM. Reason: Mo info
11-15-2006, 06:28 AM
#5
Gets Weekends Off
Joined APC: Mar 2005
Position: 737NG CA
Posts: 766
11-15-2006, 07:30 AM
#6
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Joined APC: Aug 2006
Posts: 116
As for the merged senority lists, both pilot groups are presenting their cases to the arbitrator within the next few weeks. The arbitrator has until summer 2007 to rule. US Airways pilots are proposing date of hire. Am West pilots are proposing relative senority. The assigned arbitrator ruled on a previous merger when US Airways bought someone years ago and he ruled for a slotted(ratio) system that is roughly like relative senority. CEO Doug Parker and mangement insist that management has veto power over any senority ruling and has final say over all. The unions don't think so.
Who knows what a merged list with Delta would look like, but I suspect it would be roughly the same process and outcome. I can't think of any ALPA carrier that bought another ALPA carrier and stapled the pilots to the bottom. Can anyone think of one?
Who knows what a merged list with Delta would look like, but I suspect it would be roughly the same process and outcome. I can't think of any ALPA carrier that bought another ALPA carrier and stapled the pilots to the bottom. Can anyone think of one?
Last edited by hangaber; 11-15-2006 at 07:40 AM.
11-15-2006, 07:32 AM
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11-15-2006, 07:51 AM
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Posts: 394
11-15-2006, 08:13 AM
#10
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Joined APC: Mar 2006
Posts: 349
Anybody know how they want to paint their aircraft assuming they really merge? I would guess in Delta colors, I don't really know why, but is there any info on that or is that only speculation?
And how about alliances, will they be flying Star-Alliance or Skyteam?
And how about alliances, will they be flying Star-Alliance or Skyteam?
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