US Airways Group and private equity firm TPG Capital may team up to bid for American Airlines' parent, AMR Corp, according to people familiar with the discussions.
A partnership with TPG could boost a US Airways bid for its larger rival in several ways. It could give the carrier more financial flexibility, including the ability to pay some AMR creditors in cash. The addition of TPG, which has invested in several airlines before, could also serve as third-party validation of the proposed combination.