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In Discussions With Northwest, Delta Dismisses US AirwaysJanuary 11, 2007 By: Travel Agent Central Contributor
Following US Airways' second merger offer, Delta on Wednesday offered a two-sentence statement that seemed to express the same sentiment as before: not interested. Later that day, Northwest Airlines' interest in Delta came to light. The New York Times reports Delta and Northwest have been in talks for weeks, stating that a Northwest bid may be a better match because the two carriers' routes overlap less than Delta and US Airways. Meanwhile, TheStreet.com reports that US Airways is willing to give up gates at Charlotte Douglas International Airport in North Carolina to ensure the merger is approved. "The move could remove a major obstacle to the proposed merger, which some experts say is a long shot because it would leave a single airline in control of the two principal hubs in the Southeast, Charlotte being one and Atlanta the other," staff reporter Ted Reed writes. Delta's rejected US Airways initial $8.4 billion merger bid, stating that the proposal was "structurally flawed" because US Airways would face antitrust hurdles. Delta also said the initial plan also has "overwhelming labor issues" and is based on "faulty economic assumptions."