Rival predicts Delta will likely merge

— -- Delta's market value is less than half of what its managers last year argued their company would be worth on a stand-alone basis when Parker, on behalf of US Airways, attempted to buy Delta.

Delta's shareholders "deserve better," Parker said. Now, new CEO Richard Anderson, has "to go create value through a merger."

If Delta does agree to merge, "All the big sticks in the industry" will jump on the consolidation bandwagon, Parker said. He declined to discuss US Airways' merger prospects.

Faced with Parker's offer, then-CEO Gerald Grinstein convinced creditors that Delta would be better off on its own after exiting Chapter 11 bankruptcy, and said it would be worth as much as $12 billion — more than US Airways was offering. Delta now has a market value of about $4.3 billion.

"Delta's board is reviewing our strategic options," said spokeswoman Betsy Talton, declining to comment further.

Parker is a longtime believer in mergers as a way of bringing consistent profitability back to the airline business. The current US Airways was formed in 2005 when the Parker-led America West acquired the old Virginia-based US Airways, then in Chapter 11.