AMR May Target JetBlue for Takeover
JetBlue Airways may become a takeover target for AMR’s American Airlines or US Airways Group if federal regulators succeed in derailing AMR’s merger, Bloomberg reported.
After the U.S. Department of Justice sued two weeks ago to block the creation of the world’s biggest carrier, saying it would reduce competition and boost fares, both airlines could turn their sights to JetBlue, whose smaller size makes it less likely to raise antitrust issues while also offering a base in New York, Bloomberg reported JetBlue shareholder Eagle Asset Management said.
With a market value of $1.8 billion, JetBlue may be vulnerable, as its shares trail an index of the largest U.S. airlines by the most since 2006, according to data compiled by Bloomberg.
To read the entire Bloomberg story, click here.
Previously on abfjournal: AMR Calls Delay of Bankruptcy Plan Approval ‘Destabilizing,’ August 27, 2013