Delta Air Lines officially rejected an $8bn (£4.05bn) merger with US Airways, proposing instead a recovery scheme when it emerges from bankruptcy.

Delta, which aims to emerge from bankruptcy as an independent firm, said the deal proposed in November would be "a poor strategic fit for Delta".

Delta's five-year plan, which needs creditor approval, values the firm up to $12bn - far above US Airways' offer.

US Airways said it remained "a determined bidder for Delta".

Analysts say other airlines could still make an offer for Delta Air Lines.

"Every carrier is studying every other carrier all the time, and if the process of consolidation starts, you would not want to be left out, said Delta's chief executive Gerald Grinstein.

Full Story