Mississippi Sen. Trent Lott found a picturesque way to oppose the bid
for a decidedly hostile takeover of Delta Air Lines by US Airways when he
said of the Arizona carrier: "You're an aggressive suitor, but the lady
from the South doesn't want to be forced into this shotgun wedding." But
there was much more than Southern pride at stake in shooing away US
Airways Group.
A statement by the creditors' committee for Delta Airlines, rejecting
the $9.8 billion takeover offer, said in prosaic language why such a
shotgun wedding would not lead to a happy partnership: "The risks and time
required for a successful merger were too great." With that, on Wednesday,
US Airways withdrew its offer.
Delta's creditors were in agreement with the Atlanta-based airline's
CEO Gerald Grinstein, who described the proposed takeover as "blatantly
anti-competitive," and a "poster child of the worst kind of merger." Mr.
Grinstein argued convincingly that Delta's business model has been
transformed and that the carrier expects to emerge from Chapter 11
bankruptcy in the spring as "a strong, healthy, and vibrant global
competitor."
Delta, as was to be expected of a Southern Lady, won many hearts as she
refused to give in to her unwelcome suitor. Her admirers in Charleston
played a significant role in responding to her plight. As The Post and
Courier's Kyle Stock reported, a group of Lowcountry Republican lawmakers
showed their concern by holding a rally at Charleston International
Airport. State Rep. Bobby Harrell, who is speaker of the House, pointed
out that while all the legislators at the rally were in favor of
market-based economies, their objection was the virtual monopoly the
merger would create. They noted that Charleston International is one of 10
U.S. airports with the highest fares in the country. Rep. Harrell warned
before the deal was rejected that combining Delta and US Airways, which
handle 69 percent of passenger traffic from Charleston, would ensure that
air fares go skywards.
Sen. Lott's appeal to chivalry obviously did not sway US Airways. They
made a market decision after hearing from the creditors, who put their own
money on the line in refusing to give their approval to a forced
marriage.