Canaccord Genuity Morning Coffee on US Airways Group (LCC) and Delta Air Lines (DAL): Looking To Join The Mile High Club
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Price: $22.55 --0%
Rating Summary:
6 Buy, 2 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
6 Buy, 2 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
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Canaccord Genuity Morning Coffee on US Airways Group (NYSE: LCC) and Delta Air Lines (NYSE: DAL): Looking to join the mile high club.
According to sources close to the matter, Delta Air Lines is looking at US Airways as a possible acquisition target along with American Airlines parent AMR. It has apparently been working with Goldman Sachs (NYSE: GS) and Blackstone Group (NYSE: BX) and sees itself as a consolidator in the industry. While Delta has not approached US Airways, the sources say that that deal would make the most sense and would have the highest probability of success. A purchase of AMR (OTC: AAMRQ) would likely draw heavy scrutiny from regulators due to the size of the combined company, although the sources did say that Delta conducted it’s own anti-trust analysis and believe that the deal could make it past regulators with some concessions. US Airways has been open to a merger for some time and has previously looked at a possible partnership with AMR. Combined, AMR and US Airways would create an airline that is about the same size as Delta. The airline industry has seen a good deal of consolidation over the past decade, cutting the number of major airlines from about 20 to five, as providers look to combat rising oil costs and sluggish passenger growth.
According to sources close to the matter, Delta Air Lines is looking at US Airways as a possible acquisition target along with American Airlines parent AMR. It has apparently been working with Goldman Sachs (NYSE: GS) and Blackstone Group (NYSE: BX) and sees itself as a consolidator in the industry. While Delta has not approached US Airways, the sources say that that deal would make the most sense and would have the highest probability of success. A purchase of AMR (OTC: AAMRQ) would likely draw heavy scrutiny from regulators due to the size of the combined company, although the sources did say that Delta conducted it’s own anti-trust analysis and believe that the deal could make it past regulators with some concessions. US Airways has been open to a merger for some time and has previously looked at a possible partnership with AMR. Combined, AMR and US Airways would create an airline that is about the same size as Delta. The airline industry has seen a good deal of consolidation over the past decade, cutting the number of major airlines from about 20 to five, as providers look to combat rising oil costs and sluggish passenger growth.
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