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JetBlue to Pass on American Buyout

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…

By Douglas A. McIntyre
Published August 21, 2012, 7:13am ET · 1 min read

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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

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Douglas A. McIntyre

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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