US Airways has raised its hostile merger bid for bankrupt rival Delta Air Lines by nearly one fifth to $10.2bn (€7.9bn) in an effort to gain approval from Delta's creditors committee. If a deal were to go ahead, it would be the largest merger in the airline sector to date at $15.2bn including debt.

US Airways said Monday that it had added Morgan Stanley to provide financing for the deal. Morgan Stanley joins Citigroup as a joint lead arranger on the offer. Citigroup is also acting as an advisor to US Airways.