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US Airways CEO: No increase to Delta offer right now

US Airways CEO: No increase to Delta offer right now

US Airways has no intention right now to increase its $8.4 billion (euro6.38 billion) offer for Delta Air Lines and it cannot see itself backing out of its pursuit of Delta for any reason, Chief Executive Doug Parker said Thursday.
In a wide-ranging telephone interview with Associated Press reporters, Parker said Tempe, Arizona-based US Airways Group Inc. firmly believes that its offer for Atlanta-based Delta Air Lines Inc. provides more value than Delta's plan to emerge from bankruptcy protection by the middle of next year as a stand-alone carrier.
"We believe our offer is more than fair and don't feel any need to amend it at this point," Parker said.
Asked if there is any way US Airways would drop its hostile bid for Delta absent Delta's creditors' committee saying it was not interested, Parker indicated he did not see any.
"We think this is such a unique opportunity that we have an obligation to pursue it and because of that obligation we will pursue it and believe we will be successful," Parker said. "So, no, I can't envision any scenario where we simply say, 'We change our mind. We don't think there's the value here and we're going home.'"
Parker's comments came as lawyers for Delta, the third-largest U.S. carrier, said Wednesday they have scheduled a Feb. 7 hearing in bankruptcy court to consider approval of the disclosure statement to the carrier's stand-alone reorganization plan.
The disclosure statement includes details on Delta's operations. If the statement is approved, that means Delta can begin soliciting votes on the reorganization plan, which typically takes four to eight weeks, Delta spokesman Michael Freitag said.
Delta is seeking to establish Feb. 1 as the date by which persons who want to vote on the reorganization plan must be creditors of the airline.
Delta faces the bid by US Airways that was first disclosed to the public on Nov. 15, even as Delta's reorganization plan calls for Delta to emerge from Chapter 11 bankruptcy by the middle of next year as a stand-alone carrier.
US Airways is hoping Delta's creditors force Delta's hand in its direction.


Updated : 2021-05-19 11:51 GMT+08:00