Delta Airlines Considering a bid for American Airlines
The talk on the street today is about the possibility of Delta assessing a bid for American Airlines. There has been speculation that American Airlines could be headed for a merger with US Airways ever since American's parent company filed for bankruptcy protection. But could it be that Delta Air Lines is considering a bid for American? According to The Wall Street Journal, the answer is "yes."
As for antitrust concerns, the Journal's sources tell it that Delta has run its own analysis on whether regulators would ever sign off on such a deal. The airline has concluded that it could probably win regulatory approval if it made concessions, the Journal reports.
In a letter to employees in December, AMR's new chief executive, Tom Horton, hinted at speculation AMR might be the target of a takeover while in court protection: "And as we've seen before in this industry, there may be opportunists who wish to acquire our company," he said.
It could interesting to see something like this happen.
I think it's going to take a while for AMR in bankruptcy court to eliminate a lot of their 'unprofitable entities.' After they dump the leases for all of the obsolete aircraft and depending on whether the PBGC takes over their retirement responsibilities (so doubtful), the company might be an asset to Delta (comments kyshel?).
The AA hub in MIA is fantastic and might Delta in beefing up their South American traffic and taking some of the burden away from ATL.
Guess USAir would also take a run at the pared down AA as well.
Could happen, but a lot of hurdles to cross to get there....in the interim, guess I'll continue to book AA deals.
Last edited by omegaet; 01-15-2012 at 07:05 AM.
imo, very doubtful Delta will do the deal. My guess is American Airlines will be around for many years. Probably will emerge from bankruptcy a smaller and stronger operating entity. I believe the bankruptcy is just a tool to dump the excess aging aircraft and to eliminate the burden of their retirement obligations.
I must have read the same article you did. I tend to agree with you. It is quite unlikely that Delta will get into bed with American Airlines. As you say, most likely, American will emerge stronger after the bankruptcy with a leaner operation, free of the retirement burden and maybe shed some of the aging air-crafts in the process. Only time will tell.