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US Airways Attempts Hostile Takeover of Delta Air Lines |
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In a letter sent to US Airways employees, Doug Parker lays out the history of a merger attempt, and the reasons for a hostile takeover of Delta Air Lines.
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.
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