Rejuvenated
Feb 17, 07, 1:08 am
NEW YORK, Feb 16 (Reuters) - The resurgent U.S. airline industry may attract interest from cash-flush buyout firms, but rising valuations and entrenched unions could reduce the appeal.
The U.S. airline industry is in its best shape since 2000, posting profits last year amid soaring demand and leaner costs after racking up $35 billion in losses over the previous five years. The improved finances and stable outlook for the industry make companies like American Airlines' parent AMR Corp. (AMR.N: Quote, Profile , Research) a potential target for private equity firms.
"They've significantly picked up their interest from, say, five years ago," said John Luth, Chief Executive of transport-focused investment bank Seabury Group. "They're really open for business both here in the U.S. and elsewhere."
Source: http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com: 20070216:MTFH49083_2007-02-16_19-30-10_N16260108&type=comktNews&rpc=44
The U.S. airline industry is in its best shape since 2000, posting profits last year amid soaring demand and leaner costs after racking up $35 billion in losses over the previous five years. The improved finances and stable outlook for the industry make companies like American Airlines' parent AMR Corp. (AMR.N: Quote, Profile , Research) a potential target for private equity firms.
"They've significantly picked up their interest from, say, five years ago," said John Luth, Chief Executive of transport-focused investment bank Seabury Group. "They're really open for business both here in the U.S. and elsewhere."
Source: http://yahoo.reuters.com/news/articlehybrid.aspx?storyID=urn:newsml:reuters.com: 20070216:MTFH49083_2007-02-16_19-30-10_N16260108&type=comktNews&rpc=44