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| | US Airways may go shopping again, given continuing pressure on the industry to consolidate and reduce the number of available airline seats, analysts said on Wednesday.
US Airways Group Inc. wouldn't comment about pursuing other deals, now that Delta Air Lines (other-otc: DALRQ.PK - news - people ) Inc.'s official creditors committee rejected its $9.8 billion hostile bid. US Airways promptly withdrew its buyout offer.
But analysts said CEO Doug Parker is known for aggressively snapping up bankrupt airlines and turning them around. And his recent success with his ongoing combination of America West (nyse: LCC - news - people ) and the bankrupt former US Airways has given him a lot of currency on Wall Street.
"US Airways wants to be a buyer rather than a seller," said Ray Neidl, an airline analyst with Calyon Securities in New York. "It's got a young, aggressive management team. They've done a good job turning around a troubled airline. They've got the confidence of the investment community. They can raise capital for an acquisition." |
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US Airways may be looking for another company to buy after talks with Delta ended earlier this week. US Airways CEO Doug Parker said bankrupt airlines are particularly attractive because they make it easier to boost profits. A bankrupt airline can get out of expensive contracts and leases and put pressure on unions to renegotiate contracts. I don't know about you, but if I was going to Hawaii, instead of flying on one of his airlines, I'd drive.
