U.S Airways bids for Delta to create largest airline

Thursday, 16 November 2006, 20:30 IST
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New York: U.S Airways Group offered on Wednesday to take over bankrupt Delta Air Lines in a bid worth about $8 billion that would create the world's leading airline. US Airways proposed that the new airline operate under the Delta name, serving 350 airports and allowing annual cost savings of at least $1.65 billion. Delta creditors would get $4 billion in cash and about $4 billion in US Airways shares, US Airways said in a statement. The merger plan builds on a recovery among US airlines, spurred by rising travel demand and an industry consolidation that has included cost cutting and layoffs. US Airways came out of bankruptcy last year and merged with America West to become the seventh-largest US airline. Delta is the US number three. The combined company would overtake American Airlines to become the world's biggest airline, based on paying passenger miles flown through September, Bloomberg News reported.
Source: IANS