Well, I was planning to go bed, but this is breaking. The Wall Street Journal has published an article that could have serious ramifications if there’s the money to do… and the will. And it involves Delta looking with hungry eyes with Delta.
The full article at the Wall Street Journal (sub required) , however the AFP has posted a precis of the article.
Delta Air Lines is eyeing a bid for American Airlines according to sources. Now in second place after United and Continental merging, Delta has appeared to have enlisted the help of Blackstone (an investment firm) to assist.
AMR – American Airlines parent entered Chapter 11 in November last year as a tactic to reorganise and cut costs. Meanwhile private-equity firm TPG Capital is on the attack too for a slice of the AMR pie.
If any chance to do this happens, it could be months away whilst AMR completes sorting it’s Chapter 11 status.
Realistically, does this have a chance in hell? I honestly don’t think so – two mega-carriers joining forces would be tough to get past any trade commission no matter where you are in the world.
Don’t forget US was also eyeing AA, just like TPG (investment corporation. I’m not exaclty sure how serious of a contender US is. They are Star Alliance, but have always seemed like the T-Mobile of the major players. (For this instance, I don’t consider SW a major player because their international offerings are insignificant. Otherwise, they would be the T-Mobile of the airline industry.)
How about US and AA merge and keep the AA image. That’d be great. (lol) Although I do not fly AA, I have to admit AA is an icon recognized world-wide (like the old UA). Delta…not as iconic.
Wouldn’t this severly hurt or dismantle OneWorld?
Fingers crossed for AAMRQ stock to kick hard tomorrow!