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Isakson, Chambliss Praise Creditors for Supporting Delta Air Lines as a Stand-Alone Carrier

Location: Washington, DC

Isakson, Chambliss Praise Creditors for Supporting Delta Air Lines as a Stand-Alone Carrier

U.S. Airways Withdraws Bid to Merge With Delta

U.S. Senators Johnny Isakson (R-Ga.) and Saxby Chambliss (R-Ga.) today praised the decision by the official, court-appointed creditors committee to support Delta Air Lines' plan to emerge from bankruptcy as a stand-alone carrier. As a result, U.S. Airways withdrew its proposed bid to merge with Atlanta-based Delta.

"I'm not surprised by this great news. The creditors analyzed the U.S. Airways offer and realized it would eliminate competition, raise fares and reduce service. Delta's plan to emerge from bankruptcy as a strong, stand-alone carrier combined with the enthusiasm of its employees and its demonstrated ability to make a profit is better for the country, the traveling public and Delta's creditors," Isakson said. "Delta Air Lines went into bankruptcy with a goal of emerging competitive and strong and honoring its commitments to its employees and to its customers. "It has cut its costs, reconfigured its aircraft, aggressively gone into international markets, made its fares more affordable and received one of the highest service rankings of any airline in the industry because of the hard work of its employees . Delta has worked hard to develop a plan to exit bankruptcy and deserves this chance."

"There is no question this was a successful united front and our message was heard loud and clear. I commend every single person involved in expressing their opposition to U.S. Airways' hostile takeover bid throughout Georgia, in the halls of Congress, and across the country. This is a big win for our state and for the 25,000 hard-working Georgians who are employed by Delta Air Lines," said Chambliss. "Delta has met its challenges head-on and deserves an opportunity to follow through with its aggressive plans to emerge as an independent company and continue to provide its top-notch customer service. We are mighty proud that Delta will remain our Delta."

On Dec. 12, 2006, Isakson and Chambliss sent a letter to the chairman and ranking member of the Senate Committee on Commerce, Science and Transportation asking them to hold hearings on the impact of the U.S. Airways proposal. In the letter, Isakson and Chambliss outlined the reasons why the proposed bid is not in the best interest of the nation, the economy or the consumer. The committee held a full committee hearing on the potential impact of airline mergers, including the proposed bid by U.S. Airways to merge with Atlanta-based Delta Air Lines, on January 24 .

Isakson also contacted top officials at the White House, the Department of Justice and the Department of Transportation to voice his concerns over the potential negative impact of the proposed merger.

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