This article is from the source 'bbc' and was first published or seen on . It will not be checked again for changes.

You can find the current article at its original source at http://news.bbc.co.uk/go/rss/-/1/hi/business/6150400.stm

The article has changed 5 times. There is an RSS feed of changes available.

Version 1 Version 2
US Airways eyes $8bn Delta merger Delta 'cautious' over $8bn merger
(about 3 hours later)
US Airways has made a $8bn (£4.2bn) offer to merge with rival Delta Air Lines, in a deal that would create one of the world's largest airlines. Delta Air Lines has responded coolly to a proposed $8bn (£4.2bn) merger with rival US Airways.
Under the terms of the deal, both airlines would combine once Delta emerged from bankruptcy protection. Delta said it would study the terms of the proposed deal, which would create one of the world's largest airlines.
But it said it planned to emerge from bankruptcy protection next year as a "strong, stand-alone carrier".
Shares in the two airlines, which have suffered severe financial difficulties in recent years, both rose sharply after the news emerged.
Different objectives?
Under the terms of the proposed deal, both airlines would combine once Delta emerged from bankruptcy protection in February.
The cash and stock offer would give Delta's unsecured creditors $4bn in cash and 78.5 million shares of US Airways stock.The cash and stock offer would give Delta's unsecured creditors $4bn in cash and 78.5 million shares of US Airways stock.
We received a letter from US Airways this morning and will, of course, review it Gerald Grinstein, Delta chief executive
If the deal goes ahead, the airline will operate under the Delta name.If the deal goes ahead, the airline will operate under the Delta name.
Pay cuts But Delta said its priority was emerging from bankruptcy protection as a stronger, more competitive airline.
News of the bid led to sharp rises in both companies' share prices. "We received a letter from US Airways this morning and will, of course, review it," said Delta chief executive Gerald Grinstein.
It would serve more than 350 destinations across five continents, and, according to US Airways, be the biggest carrier across the Atlantic. "Our (reorganization) plan is working and we are proud of the progress Delta people are making to achieve this objective."
US Airways recently joined forces with American West Troubled past
A merged airline would serve more than 350 destinations across five continents and, according to US Airways, be the biggest carrier across the Atlantic.
US Airways said it hoped the combined airline would generate annual synergies of at least $1.65bn.US Airways said it hoped the combined airline would generate annual synergies of at least $1.65bn.
The deal would lead to a 10% cut in the overall capacity of both airlines, and reduce the number of unprofitable flights, US Airways said. US Airways recently joined forces with American West
Delta Air Lines filed for Chapter 11 bankruptcy protection in September last year, amid high fuel prices and cut-throat competition. "This appears to be sort of a hostile takeover," Roger King, a CreditSights analyst, said.
"US Airways is appealing directly to the creditors."
Delta Air Lines filed for Chapter 11 bankruptcy protection in 2005, amid high fuel prices and cut-throat competition.
In December, pilots at Delta voted to approve a 14% pay cut to help keep the firm trading.In December, pilots at Delta voted to approve a 14% pay cut to help keep the firm trading.
US Airways was itself formed from the merger last year of the struggling airline of the same name and smaller rival American West.US Airways was itself formed from the merger last year of the struggling airline of the same name and smaller rival American West.