Sirened

US Airways has upped the anti in its bid to acquire bankrupt Delta. The airline’s initial offer of $8.5 billion was spiced up to entice Delta’s creditors. US Airways has now offered $10.2 billion, $5 billion in cash and 5.2 billion in stock.

So the difference in proposals comes to $1.7 billion. Man, they were really trying to shaft Delta on the first one!

Many analysts question the merger as one that would violate antitrust laws. Delta and US Airways share many of the same routes. So by consolidating and reducing the competition, they could have a free hand in raising prices.

A merger between Delta and US Airways would create the largest American airline. It could also lead to other airlines wishing to consolidate, further minimizing competition in an industry that has already seen increased fares due to higher fuel costs.

The deal may be good for Delta’s creditors but it’s hard to imagine this being good for the American traveler. And it will doubtfully have any positive impact on Delta employees. If they are lucky, they will just get to keep their jobs.

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