We're Talking REAL Money Now...

Many in the industry expected US Airways Group wouldn't sit idly by as Delta Air Lines announced last month the airline could be worth as much as $12 billion as an independent operation... and Wednesday morning, the gang at USAG hiked its initial offer to buy Delta by 20 percent, to $10.3 billion.

As Aero-News has reported, management and employees at Delta have presented a united front in opposition to the hostile takeover bid... a position unlikely to change with the higher offer. Ultimately, those groups will have little say in the matter, however... as the decision rests on the shoulders of Delta's creditors.

"Right now, we feel very good about our chances of getting this done," despite opposition by Delta management, said USAG CEO Doug Parker.

Creditors at Delta will now examine the new merger bid... and weigh its potential benefits against assurances by Delta management that if they only stick with Delta's plan to emerge from Chapter 11 bankruptcy as a standalone carrier, they'll reap the rewards down the road.

Airline analyst Ray Neidl told Forbes the real issue, however, isn't necessarily whether Delta's creditors jump at the offer... but rather how federal regulators will respond to the idea of a US Airways/Delta merger.

"In my opinion, that's going to be the main thing," Neidl said, adding he gives the US Airways bid a 50-50 chance of success.

Parker agrees regulators will have the final say on whether the deal will pass regulatory muster... and he says it's easy enough to answer that question.

"Let's just go ask them and find out," Parker said.

To add even more drama to the proceedings... US Airways says Delta creditors have until February 1 to express their interest in the bid, or else US Airways will pull its offer.

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