Merger Rumors - US Airways and Delta Airlines - Is a Takeover Possible?

US Airways has made an unsolicited bid on bankrupt Delta Airlines. Its initial offer of $8 billion was quickly rejected, but US Airways has upped its offer and now other airlines may be interested in Delta.

Airlines Involved
US Airways is making an offer on Delta Airlines

Current Offer / Offers
The original bid from US Airways for Delta Airlines at approximately $8 billion was flatly rejected. The increased offer is said to be worth between 10 and 13 billion. There is a question of whether US Airways can handle that sort of debt load.

Travel Video Television News has put together a very detailed summary of the latest offer proposed by US Airways in its attempt to takeover Delta Airlines.

Response to the Offer
Initial offer of $8 billion was rejected. Delta has a stand alone plan. Current, improved offer may be very appealing to Delta's creditors. No definitive response yet to the newer offer.

What Is Being Said about the Merger Rumors
United Airlines is also said to possibly be interested in Delta.

Northwest Airlines is now also rumored to be in talks with Delta Airlines after Northwest exits Chapter 11 bankruptcy this year.

Gordon Bethune, who brought Continental Airlines from "worst to first" has been hired to advise Delta regarding any possible merge with another airline.

What a Merger Could Mean for Air Travelers
Merging these two airlines would likely lead to a harmonized frequent flyer program. Overlap on flight routes could mean reduced capacity (flights) on similar routes, and potential job losses at the airlines. There is always a risk of higher priced tickets if competition dwindles and the market is not filled with some other competitor.