Newsletter Subscription

Sunday, Jan 22, 2017

Delta eyes American Airlines bid

Delta Air Lines is eyeing a bid for bankrupt rival American Airlines, a source close to the matter said on Thursday, despite doubts that the proposed mega-carrier would win regulatory approval.

Atlanta-based Delta, the world's second largest airline after recently merged United-Continental, has enlisted investment firm Blackstone to craft a potential bid, the source said.

Related Research on
More Electric Aircraft Market - Global Forecast to 2021

American Airlines declared bankruptcy in November, as it struggled to slash its debt burden and costs.

Bankruptcy, a common tactic in the airline trade, was invoked to offer more legal room for maneuver to renegotiate or cancel service and wage contracts.

But some observers were doubtful that any link between Delta and American would pass muster with US aviation watchdogs.

"We are skeptical on both the merits of any potential acquisition by Delta, which we do not think needs to get larger, or by the ability of such a deal to pass regulatory scrutiny," said Jim Corridore, an airline analyst with S&P Capital IQ.

The Wall Street Journal reported that private-equity firm TPG Capital was also considering a bid for American.

by Mathieu Rabechault © 2012 AFP

Published on ASDNews: Jan 12, 2012


Operating Lease Seminar 2017

Mar 20 - 22, 2017 - Barcelona, Spain

Register More info

US Export Controls on Non-US Transactions Seminar

Mar 20 - 23, 2017 - Singapore, Singapore

Register More info

© 2004-2017 • ASDNews • be the first to know • contact usterms & conditionsprivacy policyadvertisingfaqs