Does A US Airways-American Airlines Merger Make Sense?

Tue, 01/31/2012 - 15:53 EDT - Seeking Alpha

By Adam Levine-Weinberg:Ever since AMR (AAMRQ.PK) filed for bankruptcy in November, there has been rampant speculation about whether it will merge with or be acquired by one of its competitors. Speculation further escalated last week, with US Airways (LCC) publicly confirming that it is looking into an acquisition of AMR. Moreover, the company finally completed a labor agreement with its flight attendants, suggesting that it is in a hurry to square away its own house. Delta (DAL) and TPG Capital are also apparently considering making offers for American, and Delta is even weighing a potential bid for US Airways, according to recent reports.Delta, being the second largest carrier in the world (and only slightly behind United Continental (UAL)), would have a hard time convincing regulators to sign off on either deal. Delta and US Airways compete heavily throughout the East Coast, and dominate the Southeast in particular. Delta and American competeComplete Story »

Original article
Login or register to post comments

Airlines Hit 52-Week Highs: Buy Quality, Not Hope
By Adam Levine-Weinberg:Numerous airline stocks hit 52-week highs last Friday, including Delta Air Lines (DAL), United Continental Holdings (UAL), Southwest Airlines (LUV), US Airways (
Suitors For American Airlines: Better Prospects If We Look North To Alaskan Airlines
By AnalytixInsight:We provide fundamental analysis as well as assessments of corporate actions and dividend and earnings quality reports on over 40,000 globally traded equities. We used our online platform to explore if Alaska Air Group Inc. (ALK) and American Airlines (AAMRQ.PK) could tie the knot.
Time To Take Profits In US Airways
By Adam Levine-Weinberg:US Airways (LCC) has enjoyed a
American Airlines And US Airways Merger Will Create An Industry Behemoth
By Trefis: American Airlines (AAMRQ.PK), which is currently going through bankruptcy court proceedings, has announced its merger with US Airways (NYSE:LCC) to emerge from bankruptcy.
The New American Airlines: $13 Billion Potential Value
By Vaughn Cordle: By Vaughn Cordle, CFA And Jim Higgins, CFA Better Economics and Competitive Fares Go Hand in Hand
United Continental Has Flown Too High, Too Fast
By Adam Levine-Weinberg:After being frozen in a trading range between $19 and $21 for several months, mega-airline United Continental (UAL) has recently rallied above $23/share, with most of those gains oc
United Airlines' Path To Much Higher Profits
By Stone Fox Capital:With the settlement in the US Airways (LCC) and AMR Corp (OTC:AAMRQ) merger opening the gates for the completion of the merger that promises to usher in $1 billion in synergies, United Airlines (UAL) decided that it would not be outdone.
Why A Failed Merger Could Be Good For US Airways Shareholders
By Sammy Pollack:It is too early to say what the final result of the justice department lawsuit holding up the merger between US Airways (LCC) & American (OTC:AAMRQ) will be. Most market participants think that a merger between the two companies would be bullish for LCC shares. I agree.
AMR-US Airways Merger: More Benefit For Airline Industry Competitors?
By George Putnam:One of the top stories in the bankruptcy and turnaround investing world over the past few weeks has been the merger of US Airways (LCC) with AMR Corp. (AAMRQ.PK) (the parent of American Airlines). Most of the press coverage has discussed the effect on the two airlines that are merging.
Why The Airlines Are Finally Profitable
By Adam Levine-Weinberg:Many investors are familiar with Warren Buffett's "feud" with the airlines. Buffett made a substantial investment in USAir (LCC) and quickly came to regret it; he has since refused to invest in commercial carriers (although Berkshire Hathaway does own NetJets, a fractional jet ownership company).

Main menu

Secondary menu

Does A US Airways-American Airlines Merger Make Sense?

Related

Latest

Markets Map

Follow Us

Secondary menu