U.S. Airways In Financial Partnership Talks So It Can Keep Flirting With American Airlines

U.S. Airways CEO Doug Parker recently showed his company’s hand a bit, admitting that merging with American Airlines’ parent, AMR Corp “represents a unique opportunity that we should not ignore.” And now it may have a potential wingman interested in joining its pursuit of hooking up, private equity firm TPG Capital.

U.S. Airways, the fifth-largest carrier in the country, has picked up some steam recently in its rumored bid for its larger rival, notes Reuters, specifically, the approval of many of AMR’s creditors. That approval is bound to increase if it does join forces with TPG, as that partnership could allow for many creditors to be paid back in cash.

However, sources say the talks between TPG and U.S. Airways are by no means exclusive, and they could very well end up not partnering with each other when all is said and done. After all, U.S. Airways has had some conversations with other parties in regard to financing a merger, and might not even need a partner to finance such a deal.

Meanwhile, TPG is also all about keeping its options open.TPG has invested in several airlines before, so it isn’t new to the game of mergers and all the wheeling and dealing that goes along with it. If it doesn’t end up teaming and scheming with U.S. Airways, it may very well support AMR in a standalone restructuring deal.

American is making eyes elsewhere as well, including a bit of eyelash fluttering atJetBlue Airways Corp and Alaska Air Group Inc.

American said in a statement to Reuters on Thursday: “What’s best for our company, our people and our financial stakeholders, will be determined by the facts in a disciplined manner and process. And this includes whether American will choose to pursue any combination down the road.”

US Airways, TPG weigh joint bid for American’s parent-sources [Reuters]

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  1. Blueskylaw says:

    More consolidations, less competition, reduced seating, fewer flights, delayed flights, higher prices, more creative fees, no more free nuts, pay to pee.

    Sounds like a big WIN for consumers if you ask me.

  2. jamar0303 says:

    As long as they keep the American name when they merge (oh, and keep the head office in Dallas- Houston seems to have just taught United this very valuable lesson).

    • nbs2 says:

      I don’t know about that. United is throwing a tantrum and cutting some of the jobs that were left in Houston (well, if killing off jobs that were on borrowed time now that HQ has moved can be considered cutting). Oh, and giving the non-stop to NRT to DEN instead of IAH.

      Ok, United is the one getting screwed harder. Oh well, I’m sure someone will step up and pick up the slack – rumor has it that the oil/gas business is going to be an econimic powerhouse.

      • gman863 says:

        Cutting jobs now, even though it will be three years before the international terminal at HOU is finished and Southwest starts flying to destinations outside the US?

        United is full of shit.

    • jp7570-1 says:

      Actually, American Airlines is headquartered in Fort Worth and has been for decades. Admittedly, it is about as far east in Fort Worth as you can get, since AA wanted to be close to DFW Airport (a main hub for AA). But it is most definitely not in Dallas – the home city of rival Southwest Airlines.

      When AA announced their corporate relcation to Texas, Fort Worth was able to annex the necessary land to extend the city limits to assure AA was in the city.

    • prosumer1 says:

      Sorry, not with you on this one. American is a terrible airline. Their fares are consistently higher than everyone else, and they have an aging fleet of planes, and are known for bad service on domestic flights. I’ve heard good things about their international flights, but I’ve never flown with them, so I wouldn’t know.

      It would be nice for US Airways to have a hub in Dallas, though.

    • jp7570-1 says:

      Actually, American Airlines is headquartered in Fort Worth and has been for decades. Admittedly, it is about as far east in Fort Worth as you can get, since AA wanted to be close to DFW Airport (a main hub for AA). But it is most definitely not in Dallas – the home city of rival Southwest Airlines.

      When AA announced their corporate relocation to Texas, Fort Worth was able to annex the necessary land to extend the city limits to assure AA was in the city.

  3. jp7570-1 says:

    In no small coincidence, TPG is based in Fort Worth, Texas – also the home city of American Airlines corporate HQ.

  4. HogwartsProfessor says:

    “What’s best for our company, our people and our financial stakeholders, will be determined by the facts in a disciplined manner and process. And this includes whether American will choose to pursue any combination down the road.”

    What about your CUSTOMERS???? Hmmm?