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US Airways ups ante to salvage faltering Delta offer

January 29, 2007
US Airways Inc. has told the creditors committee of bankrupt Delta Air Lines Inc. that it will boost its $9.8 billion hostile takeover by $1 billion if the committee demands Delta allow US Airways to conduct due diligence, according to The Wall Street Journal, quoting unnamed sources. Delta also would have to postpone a Feb. 7 hearing on its restructuring plan.

US Airways, of Tempe, Ariz., is preparing what is expected to be a final offer to woo the committee of Atlanta-based Delta, which has been cool to earlier offers.

A combined airline would garner about 20 percent of traffic at Indianapolis International Airport, second only to Minneapolis-based Northwest Airlines, which as 22.6 percent of the market. Both US Airways and Delta contract with Indianapolis-based Republic Airways Holdings Inc. to provide connecting flights.
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