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CHICAGO - US Airways today withdrew a US$9.8 billion ($14.5 billion) bid for bankrupt Delta Airlines, taking pressure off rival carriers to consolidate.
US Airways, the No. 7 US airline, voided the offer after Delta's official creditors committee said it will instead support Delta's plan to exit Chapter 11 as a stand-alone company.
"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 in a statement.
Shares of US Airways were up 2 per cent, while Delta fell 4 per cent.
The termination of the bid marked the end of US Airways' 11-week effort to acquire its larger rival, the No. 3 US airline, which should snuff out speculation that the fragmented and highly competitive airline industry would undergo a wave of consolidation, according to analysts.
"This probably puts an end to (merger talk)," said airline consultant Michael Boyd. "There never was any need for airline consolidation."
- REUTERS
