WSJ: Delta, TPG Assessing Bids for American Airlines

[johnny kat]

No one I know ever thought a breakup of AA would be a preferred outcome. Thinking about all the issues and parties involved I find it quite odd that anyone would prefer a breakup other than the creditors in order to retrieve their losses. I don't think any judge or politician is going to let a sell off of assets happen. As someone else mentioned I think it more appropriate that AA and TPG will team together. Which would probably be the end to the US takeover scenario. Unless US is already alligned with TPG and AA, which would be the worst case scenario for DL and WN. Good luck to everyone at AA!

 

[BartlettAve]

A merger, I know that Delta will drastically reduce DFW, like AA reduced STL. A lot of heads rolling at DFWHQ.

If there is a fair seniority integration, it will be based on present-day AA seniority, not TWA seniority.

The former TWA FAs are, however, are getting closer to winning their seniority back. I guess their survival thru a DL/AA acquisition all depends on timing.

 

[eolesen]

This was the topic on my blog today... I've been taking a breather, but this was too much to pass up on.

http://www.olesen.com/2012/01/dl-aa-no-way.html

Time will tell, but in short, this is probably the most anti-competitive idea to float in the US airline industry since.... well, ever.

It would effectively allow the #1 and #2 airlines to carve up far too many markets to pass muster with the DOJ.

 

[BoeingBoy]

<_< ------ The fun is starting! http://news.yahoo.com/potential-suitors-circle-american-airlines-sources-200735842.html;_ylt=Ajs9XCoidN8Wd8LCBH_RHVKw73QA;_ylu=X3oDMTQ3MmpvOGlyBG1pdANBcnRpY2xlIFNlY3Rpb24gQnVzaW5lc3MEcGtnAzBmZTA3YjZiLWQ1OTUtMzNkMC1iYzQ5LTUzMGMwYTVjZGM3NwRwb3MDMgRzZWMDdG9wX3N0b3J5X2Nva2UEdmVyAzhkMDJiNTAwLTNkNmQtMTFlMS1iNzk5LTUyOGNlOWE0MGY5OQ--;_ylg=X3oDMTMxYzRmOXVnBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDN2Y4ODNkN2EtMGJmYS0zZDliLWFmMzgtZTE0YzkzNThkMTQ4BHBzdGNhdANidXNpbmVzcwRwdANzdG9yeXBhZ2UEdGVzdAM-;_ylv=3

Probably the most accurate thing in that article is:

Speculation on a possible airline merger involving AMR has been rampant since the No. 3 U.S. airline filed for Chapter 11 protection from creditors in November.

Jim

 

[700UW]

TPG would break AA up. Delta would have to to get reg. approval.

TPG didnt break up HP or CO when they invested in them during their chapter 11 cases.

And TPG was US' DIP during the first bankruptcy till RSA outbid them.

Bonderman has lots of experience in the airline industry, just hope he doesnt bring Dave Siegel in to run AA.

 

[Maark767]

If there is a fair seniority integration, it will be based on present-day AA seniority, not TWA seniority.

The former TWA FAs are, however, are getting closer to winning their seniority back. I guess their survival thru a DL/AA acquisition all depends on timing.

Get your facts straight..... TWA F/A are not getting anything back, stop stirring up trouble.

 

[1AA]

This was the topic on my blog today... I've been taking a breather, but this was too much to pass up on.

http://www.olesen.com/2012/01/dl-aa-no-way.html

You never mentioned how One World and Sky Team would facture into this. Who would be the big loser here?
Way too many issues to be resolved here if this would happen. I doubt it very much.

 

[eolesen]

You never mentioned how One World and Sky Team would facture into this. Who would be the big loser here?
Way too many issues to be resolved here if this would happen. I doubt it very much.

As I said in the blog, there are a half-dozen aspects I could pick apart. I chose to start with networks. There's also fleet, labor, systems, infrastructure, regionals... just to name a few.

My assumption is that Skyteam would probably prevail if this were to happen.

It would also be the compelling event that could push USAir to jump ship into oneworld. Wouldn't it be ironic to have US/BA back in the headlines?... Things coming full circle, eh?...

 

[BoeingBoy]

There is some speculation that IAG might team up with TPG in an acquisition of AA coming out of BK. That could circumvent the foreign ownership rules and keep AA as the OneWorld U.S. partner, keep AA a stand-alone carrier, and is,to me, more believable than either DL or US acquiring AA.

Jim

 

[Buck]

(Reuters) - US Airways Group and private equity firm TPG Capital are among several parties interested in potential bids for AMR Corp, the bankrupt parent of American Airlines, people familiar with the matter told Reuters.

These parties have been following AMR’s bankruptcy proceedings closely to evaluate a prospect for a merger or tie-up with American Airlines, the sources said.

The sources, however, cautioned that any deal is unlikely to materialize before AMR is close to completing its court restructuring, which could take a year or longer.

The Wall Street Journal said on Thursday that Delta Air Lines and TPG are weighing a separate bid for AMR, and added that Delta hired Blackstone as its financial adviser.

Delta has conducted an antitrust analysis on a possible tie-up with AMR and concluded that with some concessions, such a deal has a good chance of getting approval from regulators, according to the report.

Sources have told Reuters that while some assets such as American Airline’s Latin American routes could be attractive to Delta, any takeover attempt for the full company has a remote chance of winning antitrust approval.

Speculation on a possible tie-up with AMR has been rampant since the No. 3 U.S. airline filed for Chapter 11 protection from creditors in November.

Delta and AMR both characterized the Journal report as “rumors” and “speculation.” Blackstone was not immediately available for comment. TPG declined to comment, while U.S. Airways was not immediately available for comment.

US Airways, formed from a 2005 merger with America West Airlines, has consistently declined to comment on its prospects for an AMR merger.

The U.S. airline industry, battered for years by overcapacity and volatile fuel costs, has found renewed stability recently because of capacity cuts and mergers.

Proponents of airline consolidation say mergers are an effective remedy for overcapacity. The most recent merger of major U.S. airlines was in 2010 when United Airlines bought Continental Airlines to form United Continental Holdings.

In December, AMR Chief Executive Tom Horton warned employees in a letter that “opportunists” could attempt a merger with the airline as it restructures.

“We will have some input in the process from several interested parties, and we need to get used to that,” Horton said in the letter.



And this from 2009

 

[MCI transplant]

Probably the most accurate thing in that article is:



Jim

<_< ------ What Intrigues me are the comments at the bottom of the page.

 

[Barfbag]

You never mentioned how One World and Sky Team would facture into this. Who would be the big loser here?
Way too many issues to be resolved here if this would happen. I doubt it very much.

TWA had many inflight programs that were once world -renoun and trashed as soon as AA became the victor.

So I can assume Sky Team will trash One World...And everything else American.

In all airline mergers or aquisitions there exist a " take no prisoners " attitude, so expect no better treatment from Delta.

We are now all POWs.. So bow and bow low, when you are told to.

 

[wrencher]

Get your facts straight..... TWA F/A are not getting anything back, stop stirring up trouble.

come on MAARK767 where's the love???????????

 

[southwind]

<_< ------ With no Union, no seniority problems! -----Just no seniority!!!!

Err..............there is Seniority @ DL and it does matter !

And unlike SW, whose mechs want AT mechs stapled or losing time, 2 year for every 4 years, all previous mergers at DL, incoming mechs kept their time and fell in line with our seniority list !

 

[Kev3188]

"Certainly, having four hubs and focus cities in former steamboat markets has to be enough, right?"

LOL.

Good one, E.