I guess the old business saying is right, ' If you aint buying you're a dying.'
This morning US Airways Group, Inc., (LCC) the parent company of US Airways made an $8 billion dollar bid for Delta Air Lines. The air carrier offered $4 billion of that bid in cash and nearly 78.5 million shares of US Airways stock valued near 4 billion dollars. In conversations between the two airlines, released this morning by Tempe based US Airways Group, Inc., the carrier said that the new airline would have roughly 85,000 employees and fly 10 percent fewer planes but that didn't mean job cuts.
"The plan is not predicated on any job cuts," Doug Parker, chief executive of US Airways. Delta Air Lines has said that they want to exit bankruptcy protect a stand alone air carrier but Parker believes that the bankruptcy process is very open and that this offer is good for Delta and their creditors. Delta said they had "feelers" from other airlines looking for a merger partner, one which included UAL Corps.' United Airlines.
Parker told analysts the merged company would divest certain assets, including a shuttle that operates in the Northeast. He also said it would optimize flights at its hubs, but did not say what further impacts the hubs could face.
As for employees, Parker said "we happen to have similar labor costs on both sides." He did not discuss pilot pay, in particular.
Chicago Tribune
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