DALLAS — With the worst recent financial record in the industry and poisonous labor relations, American Airlines wasn’t a very attractive target for buyers.
That view is changing now that American and parent AMR Corp. are reorganizing under the bankruptcy process at the same time that most other airlines have returned to profitability. Mergers have reduced competition and helped drive up fares.
Suddenly, American Airlines is in play. US Airways Group Inc. has hired advisers to study AMR, according to a source familiar with the situation, and reports say that Delta Air Lines Inc. and buyout firm TPG Capital also are weighing bids.
None of the companies would comment.
Industry insiders expect every major U.S. airline to take a look at AMR. Despite losing money every year since 2008 and missing out on the airline merger mania of the past few years, American is still the world’s third-biggest carrier by passenger traffic. In bankruptcy, AMR could shed billions in debt, reduce its costs and still afford new planes — a trifecta that has caught the eye of rivals.
“Everybody has to be thinking about how to deal with AMR in two years,” said Darryl Jenkins, a consultant who has worked for airlines on previous mergers. “They will be the most efficient carrier with a new fleet. They’re going to be very desirable.”
AMR’s chief executive has said the best course for American is to remain independent. But if another airline makes an offer that sounds good to creditors and the bankruptcy judge, then it could make more sense for AMR to simply sell itself.
