Does A US Airways-American Airlines Merger Make Sense?
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 »