US Airways Group, commented on the of Delta Air Lines` standalone plan for its Chapter 11 restructuring. Doug Parker, US Airways` Chairman and CEO said, We have always expected that Delta would file a…
US Airways Group, commented on the of Delta Air Lines` standalone plan for its Chapter 11 restructuring. Doug Parker, US Airways` Chairman and CEO said, We have always expected that Delta would file a standalone plan with the Bankruptcy Court. This plan will provide Delta creditors with a benchmark against which to evaluate the competing proposals and we welcome that comparison. This is an important step in a process that we believe will result in the merger of US Airways and Delta.
Combining US Airways and Delta will create at least $1.65 billion in annual synergies beyond the value that could be created by any standalone plan. These synergies come on top of the certainty of $4.0 billion in cash and the upside potential of 78.5 million shares of US Airways stock. These shared synergies will benefit all shareholders in the `New` Delta. Factoring the synergy benefits into our offer, the current value of our proposal is significantly greater than the value of Delta`s standalone plan, added Parker.
We remain a disciplined and determined bidder for Delta. We continue to work productively with the Creditors Committee and the Ad Hoc Bondholders Committee. Finally, we recognize and appreciate the creditors` ultimate authority in this process.
Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.
