CEO Says It Will Continue Pursuit Of Delta

US Airways CEO Doug Parker says his airline will stand pat on its offer of $8.4 billion for Delta because it provides better value than Delta's plan to emerge from bankruptcy as a stand-alone company.

Parker told the Associated Press, "We believe our offer is more than fair and don't feel any need to amend it at this point," adding later, "If these conversations move to negotiations about value, we're happy to have those conversations. We have not had those types of conversations yet."

Parker says US Airways has no intention of dropping its pursuit of Delta despite media reports Delta's creditors committee has said it's not interested.

"We think this is such a unique opportunity that we have an obligation to pursue it and because of that obligation we will pursue it and believe we will be successful," Parker said. "So, no, I can't envision any scenario where we simply say, 'We change our mind. We don't think there's the value here and we're going home.'"

For its part, Delta maintains its investors, employees and customers will better benefit from a stand-alone, reorganized company after it emerges from bankruptcy. In a statement issued Thursday the airline said its plan offers "superior value as well as a faster recovery and much greater certainty of execution" than any competing proposal, adding nothing in Parker's latest statements has changed that.

Yesterday Delta's lawyers announced a February 7 hearing for the bankruptcy court to consider approving the carrier's reorganization plan disclosure statement. The statement includes operational details, and if approved by the court means the carrier can begin soliciting votes from creditors to approve its implementation.

Without elaborating on what it might do, Parker says if the statement is approved it might bring urgency to US Airways' offer adding, "If we start moving to the point where there are things put in front of the court that are inconsistent with our proposal, yeah, you'll see the urgency pick up."

By all media reports, Parker seems to face insurmountable opposition from all the official players in the deal; Delta's management, its labor unions and the official creditor's committee have all expressed disdain for the offer -- the issue of regulatory approval has yet to be addressed. The only ray of hope for US Airways' offer seems to be an unofficial, ad hoc committee of unsecured creditors urging Delta and the court to at least consider it.

Despite all that, Parker remains optimistic saying he's convinced Delta's creditors will eventually come to see US Airways' offer as the most profitable option.

Parker said, "What I believe is they will come to the same conclusion that the public holders of their bonds have come to, which is that our proposal is worth a lot more than the stand-alone plan."

FMI: www.usairways.com, www.delta.com