We have mentioned it before – what do IAG and Japan Airlines do about American Airlines? Well IAG is considering acquiring a stake in American Airlines to stop the carrier from being bought by Delta or US Airlines. IAG is said to be close to appointing an advisor to evaluate its options. IAG, Japan Airlines and AA are so intertwined through their respective JVs that any purchase by US or Delta would lead to a possible loss of frequency (at least). To be frank a sale to US Airlines might end up suiting Japan Airlines and IAG. US Airlines management are no fools and they will look to protect the JVs. Delta on the other hand is a different matter entirely and this is the root of worries at IAG. I am surprised it has taken this long for IAG to act.
We should not forget that TPG Group is also exploring a bid for AA, and IAG could yet participate in such a takeover with Japan Airlines at their side. This is the logical move for all and would be easiest to get through regulators on Capitol Hill. Watch this space.
IAG moves into open with thoughts – Maybe to reassure TPG?
