Chicago – Is United Airlines charting a leveraged buyout that would place its ownership in private hands? That’s the buzz in aviation circles.
The carrier passed on taking equity from outside investors when it emerged from bankruptcy this year. But the current economic and political environment may cause its management to reconsider.
Private-equity firms are snapping up businesses in a buyout frenzy that’s reminiscent of the corporate-raiding days of the late 1980s.
Despite running up staggering losses during the recent aviation slump, United has plenty to offer large investors with an appetite for risk, experts say.
The nation’s second-largest carrier boasts one of the best route networks in the world, glittering hubs at Chicago’s O’Hare International Airport and Denver International Airport, and a frequent-flier program worth billions of dollars.
Led by chief executive Glenn Tilton, United also has a management team eager to deal and willing to consider unconventional means to achieve objectives.
Tilton is intent on reshaping United and has hired Goldman Sachs & Co. to scope out its strategic options, such as a merger, say people close to United.
