Talk of a big airline merger is taking off

Since American Airlines filed for bankruptcy in late November, speculation is swirling in the airline industry that there could be another big merger. One scenario has US Airways Group Inc., which transports nearly 70 percent of passengers in Philadelphia, combining with American. Another has Delta Air Lines Inc. acquiring American. Also mentioned is the private-equity firm TPG Capital evaluating an offer for American and teaming up with a foreign carrier, such as British Airways P.L.C., to take a minority stake. The latest unsubstantiated report is that Delta might go after US Airways. It is also possible that American - which has announced it will cut up to 15,000 jobs, terminate employee pension plans, and reap $2 billion in annual cost savings - will come out of bankruptcy a credible stand-alone company, which is what American wants. Read More