[an error occurred while processing this directive]
BBC News
watch One-Minute World News
Last Updated: Wednesday, 31 January 2007, 17:36 GMT
US Airways abandons Delta offer
US Airways plane
US Airways said the deal would have boosted passenger choice
US Airways has dropped a $10.2bn (5bn) takeover bid for rival Delta Air Lines after Delta's creditors backed plans for the airline to remain independent.

The proposed merger would have created one of the largest airlines in the US.

But creditors of Delta - which has been in Chapter 11 bankruptcy protection since 2005 after suffering severe financial problems - rejected the move.

US Airways said it was "disappointed" by the decision, saying it believed a combined airline would be more stable.

Separate ways

Delta hopes to exit Chapter 11 within months having overhauled its business, shedding thousands of jobs in the process.

Delta's board of directors had previously rejected its rival's offer.

But it was creditor backing for Delta's own recovery plan, based on the firm remaining independent, which prompted US Airways to withdraw.

"We would have created a better and more financially stable airline that offered more choice to consumers and increased job security to its employees," US Airways chief executive Doug Parker said.




SEE ALSO
Delta gains bankruptcy financing
30 Jan 07 |  Business
US Airways raises offer for Delta
10 Jan 07 |  Business
Delta rejects US Airways merger
19 Dec 06 |  Business

RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

PRODUCTS & SERVICES

Americas Africa Europe Middle East South Asia Asia Pacific