Print edition: 
Delta Air Lines is considering a bid for US Airways as North American carriers re-evaluate possible combinations following the bankruptcy of American Airlines parent AMR Corp., people familiar with the matter said.
A possible combination with US Airways is only one of the options the Atlanta-based carrier is considering amid an ongoing review of the competitive landscape that may not lead to any offers, said two of the people, who declined to be identified because the discussions are private. Delta hasn’t approached US Airways, one of the people said.
Delta and TPG Capital also are evaluating possible bids for American, people familiar with the matter have said, and US Airways has confirmed it’s doing the same. American, the third-largest U.S. carrier, filed for bankruptcy Nov. 29 after annual losses that began in 2008.
The filing touched off widespread reviews by U.S. airlines of all their competitors for p%ossible mergers and acquisitions as well as purchases of assets that might be divested in a restructuring, one of the people said.
Delta declined to comment on any consideration of a US Airways bid, citing its policy against discussing rumors or speculation, said Betsy Talton, a spokeswoman. US Airways also declined to comment, said Todd Lehmacher, a spokesman.
Following AMR’s bankruptcy, analysts speculated that it might receive an offer from US Airways, and Chief Executive Officer Doug Parker said that his company, the fifth-largest U.S. carrier, is evaluating the possibility of such a merger.
Millstein & Co., Barclays and the law firm of Latham & Watkins have been hired to help Tempe, Ariz.-based US Airways evaluate AMR options, Parker told analysts and investors on an earnings conference call last week.
“We can now decide whether it’s best to operate as a stand-alone or to participate in further consolidation over time, and that’s what we intend to do,” Parker said on the call. US Airways is “always interested in studying potential value- enhancing opportunities.”
With mergers shrinking the industry in the past four years, further contraction is possible while not imperative, Parker said.
US Airways is preparing a merger plan that would boost revenue and fix a weak domestic route system at American, people familiar with the matter said this month. President Scott Kirby is leading the analysis, said the people.
“We expect AMR will remain in bankruptcy for quite some time and, therefore, we and our advisers will be studying the situation for quite some time,” Parker said on the call.
United Continental is now the biggest U.S. carrier after its predecessor, UAL, merged with Continental Airlines in 2010. No. 2 Delta bought Northwest Airlines in 2008, and No. 4 Southwest acquired AirTran last year.
