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.

FMI: www.usairways.com, www.delta.com, www.nwa.com