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Delta, TPG Assessing Bids for American AirlinesDelta Air Lines Inc. and private equity firm TPG Capital are separately assessing possible bids for American Airlines parent AMR Corp., with hopes that AMR's troubles present another opportunity for airline consolidation, people familiar with the matter said. AMR filed for bankruptcy court protection in late November and is in the midst of restructuring its debt and cutting labor costs after it. Any bid for AMR likely would come several months from now. AMR could use the bankruptcy process… (online.wsj.com) More...
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Without reading the whole story, an assessment of any kind is hard. I personally think that a DAL bid would be held up or turned down based on anti trust and the fact that they really haven't got the NWA merger put to bed yet. On the other side, I really doubt that TPG would buy it to get into the Airline business. They might for awhile, but I feel like it would be shut down and sold off rather quickly, either in hopes of a profit or it would be a big fire sale so they could take a big tax write off. For employees and all concerned, even though there would be a realignment and probably force reductions, DAL would probably be better.
TPG has a long history of buying troubled airlines.
Yeah, I know, but that big?
They bought CO in the 90s, which was pretty big. They could buy AA and break it up. Who knows. I see them as a stronger possibility than DL.
Actually they bought into Continental with Air Canada and another partner whose name escapes me after the second bankruptcy as Bethune took over. They didn't have a huge amount of money invested but took out a bundle when they left. TPG has had lots of "near miss" investments in attempting take overs (Qantas being one) and lost their shirts on Midwest which they unloaded on Republic for ten cents on the dollar.
I remember when I was back in BNA for a Tournament I was attending. And seen an NWA DC-9-30 still painted in NWA colors and this was in late 2010 after I though all NW planes were painted in DL colors. DL already has NW in it's pocket now they're looking to load AA too.
The problem I really see with AA is that everything is still in house rather than farmed out, wich is the direction other Airlines are going. i.e. Eagle, and all their maintenance, particularly at Tulsa, Ft. Worth and DFW. I hate to see it for the region, what with the lick that Wichita got from Boeing last week, but I feel like Tulsa is gone if they can't sell it.