Airline Finance News - North America

AirGuide Business, April 28, 2008

Delta Air Lines, Northwest Airlines

Executives from Delta Air Lines and Northwest Airlines on Tuesday assured lawmakers that their planned merger will not stifle competition, saying there is little overlap between the two carrier's routes. They will testify in hearings starting Thursday before the House Judiciary Committee's antitrust task force and the Senate Judiciary Committee. Apr 23, 2008

Delta Air Lines, Northwest Airlines

Delta Air Lines CEO Richard Anderson said the merger of Delta and Northwest Airlines will create "the strongest, most durable of all the airlines." Anderson joined Delta as a member of the board in 2007 and was selected as CEO soon after. After his appointment, the board urged him to orchestrate a merger with another airline, and Anderson became convinced that airlines would need to consolidate as oil prices climbed. During negotiations with Northwest, Anderson insisted that Delta be the acquirer, and he reached a last-minute deal with Delta pilots. Apr 22, 2008

Delta Air Lines, Northwest Airlines

Executives from Delta Air Lines and Northwest Airlines will make a case for their proposed merger in Washington this week. Meanwhile, it is unclear how the merger would affect regional carriers that operate under contract with large airlines. Some analysts say consolidation among big airlines could threaten regional carriers. They also note that the merger may give Delta and Northwest the opportunity to retire some of their older jets. Apr 21, 2008

Eos Airlines

Eos Airlines has filed for bankruptcy in the U.S. Bankruptcy Court in the Southern District of New York and is ceasing operations altogether today, April 27. The premium-class airline, which operated from New York to London, blamed the difficulty in the current credit markets for the shutdown, which eliminates most of the positions at the Purchase, NY-based company. Jack Williams, Eos[sup.1] CEO, said in a statement: [sup.3]After overcoming today[sup.1]s extremely challenging economic and credit environment to negotiate terms for a round of financing, it is regrettable that we were forced to take this action. We had been clear since closing on our last round of financing that we would need additional capital. As difficult as it is to raise funds in the current environment, investors believe in our business model and we were on the verge of success. Unfortunately, just as we were working toward closing on an investment that would have carried us to corporate profitability in 2009, some issues arose that we could not overcome. It is regrettable that, even though investors continue to be enthusiastic about our business model, and even though we had a term sheet in hand, we were unable to close on the financing we needed. That leaves us with insufficient cash on hand to continue operations.[sup.2] On its website, Eos said its customers should seek alternative arrangements for travel and should contact their credit card companies or travel agents directly for information about how to obtain a refund for unused tickets. Members of its Club 48 loyalty club were also advised that they would be able to redeem their points for rewards and that any value related to their membership will be determined by the court as part of the bankruptcy process. Apr 27, 2008