A week ago there was a rumor that US Airways (NYSE:LCC) might buy American Air parent AMR out of Chapter 11 .The theory was that AMR would be able to cut costs through court mandated head counts and cancellations of aircraft leases. The combination of US Air and AMR would rival the marriages of Northwest and Delta (NYSE: DAL) and Continental and United.
Now, another rumor has appeared that US Air may be a target itself.
The WSJ reports that
Delta Air Lines Inc. is studying US Airways Group Inc. as a possible acquisition target, people familiar with the matter said, as U.S. carriers prepare for a new round of consolidation.
Delta, the world’s No. 2 airline by traffic, also has been assessing a similar move for American Airlines parent AMR Corp., the people have said.
Goldman Sachs and Blackstone may be involved in the deal.
Such a transaction would face high hurdles with antitrust authorities who would have to evaluate the effect of one company owning the routes that belonged to three carriers only three years ago.
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