FEATURE-U.S. airlines can find capital for right deal Sun Jun 11, 2006 1:43pm ET Email This Article | Print This Article | Reprints [-] Text [+] By John Crawley WASHINGTON, June 11 (Reuters) - A Bush administration plan to ease restrictions on foreign investment in U.S. airlines could help a struggling industry, but analysts and consultants say there is plenty of money at home for the right deal. "The airline industry is awash in capital," said Darryl Jenkins, an industry consultant who also is a visiting professor at Embry-Riddle Aeronautical University. Jenkins and others point to last year's merger between US Airways Group Inc. (LCC.N: Quote, Profile, Research) and America West Airlines Inc. as evidence the industry does not require foreign capital to move forward, as some proponents of the administration's plan suggest. Much of the $870 million raised for that deal came from hedge funds, domestic airlines and other sources. Industry observers also agree U.S.-based investors were ready to participate in the reorganization of UAL Corp.'s (UAUA.O: Quote, Profile, Research) United Airlines before the carrier financed its bankruptcy exit with debt. Robert Mann, an airline industry consultant in Port Washington, New York, also notes investors are "shoving and elbowing" to get in line for any potential merger involving bankrupt carriers Northwest Airlines Corp. (NWACQ.PK: Quote, Profile, Research) and Delta Air Lines Inc. (DALRQ.PK: Quote, Profile, Research) whether they combine or strike separate deals. "A lot of people are lining up now because they believe consolidation is around the corner, believing that as carriers merge it will remove capacity from the industry and the companies will make money," Jenkins said. For instance, shares of the merged US Airways have more than doubled in value to nearly $50 since they began trading in September. Continued... Roger & Amanda La France