By Dan Schlossberg
ConsumerAffairs.com
January 27, 2007
Consumers will suffer if US Airways succeeds in its hostile takeover bid for Delta, according to pilots who purchased a half-page ad in USA TODAY.
"If US Airways hostile takeover of Delta succeeds," the ad read, "there will be less service, worse service, less choice, higher ticket prices, and considerable job losses."
The ad also gave US Airways chairman Doug Parker a report-grade grade of "F" in his promise to create one larger, leaner carrier from the 2005 merger of America West and US Air.
It said US Airways continues to operate as two separate carriers and did not provide improved service or integrated reservations systems, airport facilities, flight operations, passenger handling, or employee groups.
The ad noted that US Airways ranked last in all but one of the six categories in the J.D. Powers Airline Satisfaction Index Study for 2006, while Delta ranked first in four categories and tied for the top in a fifth.
The Delta pilots said US Airways was last or tied for last in overall satisfaction, check-in, aircraft interiors, flight crews, and inflight amenities.
Delta had hoped to emerge from bankruptcy as an independent carrier -- and US Airways competitor -- early this year. If the merger goes through, the ad suggests service would be reduced or eliminated in many cities, including the New York and Washington markets and other East Coast cities, because of route overlap.
It also said at least one of the Northeast shuttles would be obliterated, along with up to 10 per cent of other routes.
The Delta pilots said US Airways executives and Wall Street financiers would gain from the proposed merger, while the flying public, industry employees, and communities served by both airlines would be harmed.
Delta, based in Atlanta, has more than 104,000 active and retired professional employees. US Airways is based in Tempe, Ariz. at the one-time headquarters of America West.
Delta creditors must decide whether to accept the US Airways bid, ask for more money, or reject the offer. The issue has also involved the federal government, since Congressional hearings have been started on the subject. Parker said he would withdraw his offer on Feb. 1 if no agreement is reached.
