US Airways Bids $8 Billion for Delta

US Airways said Wednesday that it had offered to acquire Delta Air Lines, now under bankruptcy-court protection, for $8 billion, The New York Times reports. The combined company would become the largest airline in the United States, eclipsing American Airlines, and would be the largest trans-Atlantic carrier as well. In a statement posted on its web site, US Airways said it is offering $4 billion in cash, plus US Airways stock that was worth $4 billion based on Tuesday's closing share price. US Airways said the merger would save at least $1.65 billion in operating costs each year by combining facilities at some airports, eliminating overlapping flights and cutting capacity by about 10 percent. W. Douglas Parker, the airline's chief executive, said in a conference call with analysts and reporters that the figure could be even greater. "This is not value that either of our companies could create independently," he said. "This only happens when the companies get together, and that's why this is so important."

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