Delta considering bid for AA

[777]

As our WSJ colleagues reported today, Delta Air Lines and private equity firm TPG Capital are separately assessing possible bids for American Airlines. Though it’s early days, Qantas could be affected if Delta makes a move on American due to the latter’s position as the only US carrier within the Oneworld alliance.

“Clearly it would be quite negative for all the OneWorld alliance carriers because you’d assume American would be converted to SkyTeam, leaving Oneworld without a US representative airline,” Macquarie analyst Russell Shaw told Deal Journal Australia.​

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Cookies must be enabled | The Australian

The flow on from this could potentially cause a massive shake up Down Under!

 

[The Rok]

But is it EVER likely to have USA regulatory approval? I doubt it? Would make them too big in the US.

 

[Must...Fly!]

All sorts of permutations for AA Miles.

Don't see how it could be approved either.

 

[777]

But is it EVER likely to have USA regulatory approval? I doubt it? Would make them too big in the US.

I think they'd have to make some concessions but i think it'd get through if they wanted it enough. Can't really tell how serious it is for now.

 

[drron]

First has to be approved by the AA trustees.US tried to take over DL whilst it was in chapter 11 but the trustees did not approve.Cheif amongst them were the DL pilots.As AA is pretty highly unionised It is unlikely the AA pilots would want to risk their seniority and they are on the trustees committee.

 

[samh004]

Considering AA has their fingers in a few other OneWorld cookie jars too (didn’t they help bail JAL out?), wouldn’t that cause further issues by a takeover attempt… too many issues I think.

Anyway, I’d hope they manage to stay independent and come out of bankruptcy like every other major carrier, and stronger for it too.

 

[Storyteller]

Hasn't AlaskaAir been a long term points earning partner for QF, as well as more recently both Miles & EQMS, plus other privileges for AA elites? They have a wide network in the USofA over the last 18 months.

I would love to see SEA as a One World hub. Not central like DFW, but that's only been there since 15 May 2011 anyway.

Probably all highly unlikely, but it would fit for most of my needs :mrgreen:

 

[drron]

AA CEO's view of a takeover-
Horton doesn't sound worried about a US Airways bid | Airline Biz Blog | dallasnews.com

"Let's go back and look at history a little bit. This is not US Airways' first attempt at this. This is a small company very strategically limited, I would argue - not any international flying, hubs of less strategic importance. "This will be their fourth try at this: Twice for United, once for Delta while they were restructuring, now American. I would argue that this will be every bit as successful as their prior tries. I'm not sure what's in the water out there in Phoenix. Maybe it's the cactus. I don't know what it is.

 

[777]

AA CEO's view of a takeover-
Horton doesn't sound worried about a US Airways bid | Airline Biz Blog | dallasnews.com

... by US Airways. No mention of Delta or a combined US/ Delta or any of the other permutations going around.

 

[drron]

... by US Airways. No mention of Delta or a combined US/ Delta or any of the other permutations going around.

He does say he is aiming at AA coming out of bankruptcy as AA.
However there is no fim Delta interest as yet.
TPG it is rumoured has asked BA to be involved in its bid.
All here-

In order to mitigate the losses, AMR could ultimately seek a sale of the business or an infusion of cash, which is why rivals are "lawyering up and advisering up", in the words of one analyst. Delta has also hired advisers, it is believed, to consider a move of its own, possibly for AMR but more likely – given the less onerous competition hurdles involved – for US Airways.
Any takeover of AMR could have big implications for British Airways and the rest of the Oneworld alliance, which began a revenue-sharing deal for the $7bn transatlantic business in late 2010. If US Airways is the buyer, it is most likely to opt into the Oneworld alliance, but there are no guarantees, analysts say. If Delta were to buy AMR and pull American into SkyTeam, that would be curtains for Oneworld.
In recent days, it has emerged that a private equity group with a history in the airline industry, TPG Group, is also examining the possibility of funding AMR in return for taking control of the company when it exits bankruptcy. TPG invested in Continental in the Nineties, and America West in the Naughties, before it was sold to US Airways. It also once teamed up with BA to make a joint bid for Iberia five years ago. It is believed to have approached BA again about taking a minority stake in AMR to ensure it stays within the Oneworld alliance, and give BA greater power to shape and improve the alliance.

British airways key to US merger mania - Business Analysis & Features - Business - The Independent

 

[drron]

I think Delta's bid has stalled as they were going to have TPG as a co investor.It seems that IAG has now teamed up with TPG-

The Sunday Times of London reported Sunday that International Airlines Group, formed in the merger of British Airways and Iberia, is considering buying a stake in American Airlines.
The Times is suggesting that IAG may take a stake or participate in a venture with private investment firm TPG, rather than let American fall into the hands of a competitor.
The Financial Times on Sunday said BA would soon hire an advisor to look into a potential investment.

The Sunday Times being a No News paper requires a subscription so this is from a dallas paper-
Merger story du jour: British Airways parent looking into American Airlines investment | Airline Biz Blog | dallasnews.com

 

[dk4]

With all the spin flying left, right and centre out of BA at the moment, they do seem absolutely panicked about the potential loss of their North American partnership.