Skift Take

US Airways immediately looks more impressive next to private equity firm TPG, but the merger still seems like one between two faded stars as opposed to the makings of a new aviation powerhouse.

Source: Fort Worth Star-Telegram
By Andrea Ahles

US Airways and private equity firm TPG are considering a joint bid for American Airlines, according to an article by Reuters.

“A partnership with TPG could boost a US Airways bid for its larger rival in several ways. It could give the carrier more financial flexibility, including the ability to pay some AMR creditors in cash. The addition of TPG, which has invested in several airlines before, could also serve as third-party validation of the proposed combination….

“The sources, however, cautioned that the discussions between US Airways and TPG are not exclusive and partnering with each other is one of many options each party is considering,” the article says.

TPG declined to comment on the article that quotes unnamed sources. US Airways has not yet returned messages requesting a comment.

US Airways has expressed interest in bidding on American Airlines’ parent company, AMR Corp., which is currently in bankruptcy. Last month, the Tempe-based carrier announced that it had reached conditional labor agreements with American’s three largest unions who are supporting a possible merger.

TPG, which has offices in Fort Worth, has also surfaced as a possible financing source for either American’s standalone restructuring plan or as possible bidder on the carrier, according to media reports. TPG was founded in 1993 when partners Jim Coulter and David Bonderman purchased Continental Airlines out of bankruptcy.

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Tags: american airlines, us airways

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