US Airways Confirms Interest in Possible Merger with American Airlines
American Airlines & US Airways
Wednesday US Airways CEO Doug Parker confirmed that his airline is indeed interested in a possible merger with bankrupt American Airlines.
The Tempe, Arizona-based US Airways has hired Millstein & Co. as consultants to determine the viability of a potential deal:
‘“We can now decide whether it’s best to operate as a standalone or to participate in further consolidation over time,” Parker said. US Airways is “always interested in studying value-enhancing opportunities,” he said.’
A US Airways-American merger would give them roughly 20 percent domestic market share and put them on equal footing with United-Continental, Delta and Southwest.
Delta Airlines and investment firm TPG Capital are also both reported to be interested in American as well.
American filed for bankruptcy in November of last year.
A US Airways-American merger seems the most likely. I don’t think the Feds will ever sign off on a Delta merger (anti-trust). Thoughts anyone….?
Category: Airnation
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