So... Who's Next? Airlines Weigh Merger Options | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

** Airborne 08.25.14 ** HD iPad-Friendly -- Airborne 08.25.14 **
** Airborne 08.22.14 ** HD iPad-Friendly -- Airborne 08.22.14 **
** Airborne 08.20.14 ** HD iPad-Friendly -- Airborne 08.20.14 **

Wed, Apr 16, 2008

So... Who's Next? Airlines Weigh Merger Options

Analysts Say United, Continental May Join Forces Soon

The aviation world is still sizing up the merger of Delta and Northwest... and analyst predictions that pairing will set off a wave of airline merger-mania are about to be tested.

The Minneapolis Star-Tribune observes a combined Delta and Northwest will have the size and reach that almost guarantees competitors will respond. American Airlines, which suddenly finds itself the number-two airline, has been mentioned as a merger candidate, as have United and Continental.

So, will regulators allow the current six domestic network carriers to consolidate to three in the next year? Chances may be better than at any time in the past. Merger proponents note a perfect storm of growing international competition as foreign airlines deregulate and benefit from open skies agreements, soaring fuel costs, growing market share for low-cost carriers, and the dramatic spate of bankruptcies in the last two weeks.

Two things seem certain -- the Bush Justice Department won't be able to take life easy during its last year, and those ubiquitous "unnamed sources close to the talks" won't be out of work anytime soon.

United Airlines CEO Glenn Tilton has been a long-time advocate of industry consolidation, calling it "...but one of the changes necessary to achieve sustained profitability... we will take the actions we need to strengthen our global competitiveness..."

For his part, Tilton says UAL will entertain a merger, "when and if it is the right choice." While that sounds like a carefully measured response, the Chicago Tribune reports Tilton's message to workers Tuesday morning is already being interpreted within the industry as setting the stage for a possible United-Continental merger.

Tilton promised his employees that executives will, "stay focused on our customers and if there is news to report we will bring it to you directly."

Place yer bets...

FMI: www.united.com, www.continental.com

Advertisement

More News

Airborne 08.25.14: SpaceX Setback, AMA Fights FAA, Redbird Migration 2014

Also: Copperstate Fly-In, No-Fly List Changes, Volcano Alert, Inhofe Campaigns In RV-8 In an initial report, ANN space correspondent, Wes Oleszewski, said that on the evening of Au>[...]

Aero-TV: In The Nick Of Time? - A NextGen GA Fund Update

The GA World Needs All The Help It Can Get... IF It Can Get It A hot topic at EAA AirVenture 2014 was the subject of the FAA requirement to be ADS-B equipped by January 1, 2020. In>[...]

ANN's Daily Aero-Linx (08.27.14)

International Republic Seabee Owner's Club (IRSOC) A website dedicated to the Seabee seaplane. You can find information about the airplanes and events, and talk to other Seabee ent>[...]

ANN's Daily Aero-Term (08.27.14): GPS Approach Overlay Program

An authorization for pilots to use GPS avionics under IFR for flying designated existing nonprecision instrument approach procedures, with the exception of LOC, LDA, and SDF proced>[...]

Aero-News: Quote Of The Day (08.27.14)

“We are grateful to Bruce for his years of unparalleled dedication to general aviation, and are delighted that he has agreed to continue on as our senior safety advisor.&rdqu>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2014 Web Development & Design by Pauli Systems, LC