Texas Air Parent Company Hopes to Diversity, Records Show
HOUSTON (AP) _ Jet Capital Corp., the holding company that controls 34 percent of airline industry giant Texas Air Corp., hopes to diversify, documents filed with the Securities and Exchange Commission show.
Jet Capital’s disclosures, filed earlier this month, have prompted speculation that the company may be interested in the hotel or rental car properties to be sold by Allegis Corp., parent of United Airlines.
The Houston Chronicle quoted an analyst as saying Jet Capital could be looking at Allegis’ Westin or Hilton hotel chains or the Hertz car-rental. Those subsidiaries are expected to be sold by Allegis when the Chicago-based travel giant is restructured.
Jet Capital is headed by Frank Lorenzo, who started the company in 1969 and owns 50.7 percent of its stock, according to a Texas Air proxy statement. Lorenzo is chairman of Texas Air, which owns Continental Airlines and Eastern Airlines.
At Texas Air’s annual meeting in May, stockholders voted to increase Jet Capital’s voting power in the company to 34.1 percent from 20.8 percent.
Under federal regulations, because of Jet Capital’s large holdings of Texas Air stock, it can be subject to reporting requirements as an investment firm. On June 2, Jet Capital asked the SEC to exempt it from that classification.
In the filing, Jet Capital said it proposed ″to diversify its business beyond the airline and airline-related businesses it currently manages through Texas Air by acquiring other businesses, which it will operate either directly or through majority-owned subsidiaries.″
In addition, ″Jet may engage in airline-related businesses directly and may purchase additional controlling positions in companies in airline and related businesses,″ the filing said.
Bruce Hicks, a spokesman for Houston-based Texas Air, today said, ″I don’t speak for Jet Capital so I can’t tell you anything. There is no spokesman for Jet Capital.″