Fur will fly as US Airways chases Delta

Never let it be said that the airline industry lacks drama.

Just when things seemed to be settling down to the dull business of turning a profit after five years of post-9/11 chaos, we have the spectacle of a David versus Goliath takeover attempt to keep us entertained and amazed.

After his attempts to sell the idea to Delta chief Gerald Grinstein were spurned, US Airways’ Doug Parker opted for a backdoor approach. He’s taken his $8 billion buyout offer directly to Delta’s creditors, bypassing the target airline’s management.

US Airways is proposing to purchase Delta for $8 billion in cash and stock.

Holy cannoli, a hostile takeover! Spunky little US Airways is trying to wrestle giant Delta into its corral.

There are miles to go before a combined Delta and US Airways take to the air. Creditors must be sold on the idea. The judge overseeing Delta’s bankruptcy must be convinced that a merger is in the best interest of all (or most) of the parties involved. And the Justice Department must rule on any anti-trust issues associated with the tie-up.

For now, it’s enough to let our jaws drop and our eyes bulge as we watch the dance play out. This is better than “Desperate Housewives.”

(Full coverage of the story to date, including excerpts from the correspondence between Doug Parker and Gerald Grinstein, is here.)