JetBlue Airways Corp. (NASDAQ: JBLU) will not be one of the bidders for the assets of bankrupt AMR, parent of American Airlines. That does not leave the crippled airline without a suitor. U.S. Airways Group Inc. (NYSE: LCC) has repeatedly said it would like to create a “merged” company to compete with United Continental Holdings Inc. (NYSE: UAL) and Delta Air Lines Inc. (NYSE: DAL), which have gained scale because of mergers of their own. The lack of a second bidder could bring down the price at which the assets are sold. But AMR has become more attractive since it went into Chapter 11. Aside from the traditional benefits of cuts in debt and plane leases, the firm has gotten most of its unions to agree to contracts that favor the carrier. Flight attendants recently came to an agreement, which leaves pilots as the only group not to settle. According to Bloomberg:
After being identified by AMR last month as likely to get a non-disclosure agreement, JetBlue has held no talks with the larger airline about a combination, Chief Executive Dave Barger said yesterday in an interview at Bloomberg’s headquarters in New York.
“We have not received a non-disclosure agreement,” he said. “We’re not interested in receiving a non-disclosure agreement from American Airlines.”
Douglas A. McIntyre
Sponsored: Attention Savvy Investors: Speak to 3 Financial Experts – FREE
Ever wanted an extra set of eyes on an investment you’re considering? Now you can speak with up to 3 financial experts in your area for FREE. By simply
clicking here you can begin to match with financial professionals who can help guide you through the financial decisions you’re making. And the best part? The first conversation with them is free.
Click here to match with up to 3 financial pros who would be excited to help you make financial decisions.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.