US Airways emphasizes commitment to Delta merger, calls for due diligence

US Airways Chairman and CEO Doug Parker yesterday reiterated his company's commitment to its proposed $8 billion takeover of bankrupt Delta Air Lines, calling on DL's board and creditors' committee to begin due diligence on the merger offer.

Parker's statement came a day after he told USA Today that the merger is "not going to happen" unless Delta management, which repeatedly has opposed the US plan, endorses the offer and works "together" with US to implement the merger. He said DL executives need to be convinced "that this plan makes sense."

But yesterday he issued a statement insisting that US is "absolutely determined to take necessary steps to move the process forward," adding, "We at US Airways are fully committed to our proposal to merge with Delta."

Parker noted that US held meetings last week with DL management and creditors, making the case that the merger "will create a strong, healthy airline, able to compete long into the future in any industry scenario, benefiting our employees, customers and the communities we serve, as well as providing Delta's creditors with the opportunity to receive far greater recoveries than what they will receive under any Delta standalone plan."

Air Line Pilots Assn. Delta MEC Chairman Lee Moak, who previously had voiced skepticism regarding the merger (ATWOnline, Nov. 23), yesterday said the pilots will officially oppose the plan, warning that US could fire DL workers "at will" after it completed the takeover.