US Airways wants to buy Big D

That Doug Parker has some guts, doesn’t he? On our way back from a meeting at US Airways headquarters, Fred and I got the word that Doug and crew offered Delta creditors and shareholders $8 billion for their company, with $4 billion going directly to creditors; a pretty gutsy move. You may remember that Doug Parker and America West picked up a nearly bankrupt US Airways and resurrected it into one of the most profitable carriers in the air. Now mind you, most industry experts had the eulogy written for US Airways… so miracles can happen in this industry.

Back to the takeover attempt…the folks on the street claim that the bid undervalues Delta but the bankruptcy judge may just think that’s okay. For a little Boyd commentary on this issue click here. Also, the US Airways move may prompt other mergers or other offers for Delta Air Lines.

Folks have been asking us what impact this proposed merger could have on CAK. Well, we don’t think there is any downside to our community if these carriers get hitched. A stronger Delta Air Lines with a more rationalized fleet and network could be great. Plus, the combined company would be the world’s (and CAK’s) second largest carrier offering an extensive network both domestically and internationally. I would be very sad to see the venerable Delta name erased from the skies though... or maybe they'd keep the Delta and erase US Airways. Hum.

Needless to say, we’ll be watching this story very closely. My bet is with Doug and company.

Comments

Happy New Years to my neighbors out at Akron/Canton. Continue the tremendous work you do at your airport. Most airports are jealous of how well you have grown in just a 10 year span, and will continue growing in the future. I have flown it 10+ times in the last couple years, and will continue using it.

Right now my coalition of Airport Supporters are trying to help out the struggling Youngstown-Warren Regional Airport. They have done a successful job with flights to Orlando aboard Allegiant Air (ALGT-Nasdaq), but they have not done much since then.

YNG needs to look at how well CAK has done over the years and perhaps take some tips from you guys. You run a very successful operation and should be commended for IT! You earn my award for the best airport in Ohio and the best operation of any government funded operation in the region.

GOOD LUCK IN 2007!

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