Delta workers warn of fallout from a merger

A hostile takeover of Delta Air Lines by US Airways would be devastating to the 6,000 Delta jobs based in Utah and to the state's economy, and would lead to higher airfares, Delta Air Lines employees said Tuesday.

Dozens of Delta employees and local politicians rallied at Salt Lake City International Airport denouncing US Airways' bid to acquire the airline. Similar rallies were held in eight other cities across the country. Also on Tuesday, Delta Air Lines' board formally rejected the $8.3 billion offer.

But Delta officials believe a second US Airways bid likely will be made and warned against the fallout.

Stephen Sandstrom, a former US Airways pilot and a newly elected member of the Utah House of Representatives, said a US Airways takeover of Delta would mean Salt Lake City would lose its hub status.

"The hub is everything to an airline," Sandstrom said after the rally. "You would see frequency of flights go down and you would see prices go up."

Sandstrom added that since the US Airways and America West merger, pilot seniority lists and route lists between the two airlines have been in "total chaos."

"They have a whole bunch of pilots on furlough," Sandstrom said. "The people that lose in a hostile takeover like this are the employees and will be the employees of Delta Air Lines."

Salt Lake City is Delta Air Line's third-largest hub in terms of departures when including code share partners. Salt Lake City is the second-largest hub when counting Delta-branded aircraft, according to John Laughter, vice president of maintenance for Delta.

Marc Carlile, a Delta pilot who lives in South Jordan, said after the rally that US Airways is not offering an increase in service. In addition, he said, Delta's domestic route system is nearly identical to US Airways'.

"US Air is simply trying to get ahold of Delta because Delta has done very well in bankruptcy restructuring," Carlile said. "They are just trying to get something they don't have, cheaply. They see us coming out of bankruptcy in the next few months as a much stronger airline than themselves, and I think they are concerned about that."

With US Airways already operating a hub in Phoenix and Las Vegas, Carlile said, a hostile takeover would possibly end hub service out of Salt Lake City.

"The many destinations that we enjoy now with nonstop service would be gone," Carlile said. "We're finally starting to see Delta turn the corner and do better. It's almost like having the rug yanked out from under you because we've sacrificed so much as pilots, as flight attendants, as mechanics, as agents. None of us have any interest in this hostile takeover."

Still, US Airways said Tuesday it remained a "disciplined and determined bidder for Delta."

Doug Parker, US Airways' chairman and chief executive, said in a prepared statement that the combining of US Airways and Delta would create "$1.65 billion in annual synergies beyond the value that could be created by any stand-alone plan."

"These synergies come on top of the certainty of $4.0 billion in cash and the upside potential of 78.5 million shares of US Airways stock," Parker said. "These shared synergies will benefit all shareholders in the 'new' Delta. Factoring the synergy benefits into our offer, the current value of our proposal is significantly greater than the value of Delta's stand-alone plan."

US Airways has filed for bankruptcy twice. In 2005, it was acquired by America West.

---

E-mail: danderton@desnews.com