Visual representations being perhaps the best…the most efficient way to show what might go on is USAToday’s Merger Analysis, summarizing the pros and cons.
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US Airways has upped its offer for Delta by nearly twenty percent, and Delta continues to oppose takeover. However, although it has pushed ahead with its reorganization plan as a standalone carrier…which will have to be approved. It is at this point US Airways could convince the creditors of the value of its own plan.
Meanwhile, Delta is in talks with Northwest Airlines as an alternative to a hostile takeover by US Airways. Both carriers are in bankruptcy right now, but unlike the US Airways merger, a Northwest merger would keep Delta in control. Also, they are much more complementary, competing in fewer markets. Northwest has extensive Pacific coverage, as well as coverage in the midwest. Delta is strong on the East Coast and has a strong west coast hub.
