Thu, Aug 03, 2006
US Airways Approaches Delta
What a difference a
year makes... with most of the airlines who were facing a wide
range of issues in summer of 2005, now doing significantly better.
Or, perhaps it would be more accurate to say, what a difference
billions of dollars in cost-cutting efforts... a merger... and two
other carriers operating under bankruptcy protection... makes.
Some believe this may just be the beginning, however, as more
airlines are looking, at least unofficially, at the idea of merging
their operations.
"It is a very, very strong likelihood that as we get into the
early parts of 2007 ... things we have been talking about will
start to come to fruition," airline consultant Dan Akins told
Reuters. "Once one makes a move, I think the others will quickly
follow."
Many analysts believe the two most likely candidates for a
merger are the two airlines currently fighting to emerge from
Chapter 11... Delta, and Northwest. Such a move could give those
airlines more control over capacity issues... as well as the power
to raise fares even higher, as there would be at least one less
competitor fighting for travelers' dollars.
In fact, such a move may be inevitable... and Reuters reports
one airline already benefitting from such a merger, US Airways, has
already approached Delta on the idea about six weeks ago.
A spokesperson for US Airways CEO Doug Parker said Delta didn't
exactly leap at the idea... but that US Airways is not counting out
the idea yet, either.
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