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 Unlimited -- Recent Daily Episodes

Episode Date

Monday

Tuesday

Wednesday

Thursday

Friday

Airborne On ANN

Airborne 06.27.16

Airborne 06.28.16

Airborne 06.29.16

Airborne 06.30.16

Airborne 07.01.16

Airborne Hi-Def On YouTube

Airborne 06.27.16

Airborne 06.28.16

Airborne 06.29.16

Airborne 06.30.16

Airborne 07.01.16

AEA2016 LIVE Aero-TV: 04/27-0830ET, 04/28-1400ET, 04/29-1100ET

Sun 'n Fun 2016 Innovation Preview on Vimeo!

Sun 'n Fun 2016 Innovation Preview on YouTube!

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 06.30.16: 7000th Citation, C Series Order, John Glenn Honored

Also: Solid Rocket Motor Test, OSH16 Coverage!, Ducted Fan, Welsh Farewell, Blue Origin, Boeing-Farnborough, European TBM 930 Cessna has delivered the first fractional Cessna Citat>[...]

Airborne 06.29.16: SWA Delays Max, McConnell OKs B29-Doc, AAL Trashes Cameras

Also: Flytenow V Supreme Ct, Electric eSpyder, F-35 Adir, IL AirShow, NJ AvTax, FAI Young Artist, Unregistered Airplane To survive in the airline business it is sometimes necessary>[...]

Airborne 06.30.16: 7000th Citation, C Series Order, John Glenn Honored

Also: Solid Rocket Motor Test, OSH16 Coverage!, Ducted Fan, Welsh Farewell, Blue Origin, Boeing-Farnborough, European TBM 930 Cessna has delivered the first fractional Cessna Citat>[...]

ANN's Daily Aero-Linx (07.01.16)

FAA Repair Station Locator Need to find a certified repair station near you? This FAA resource allows you to search by state and type of repair needed to provide you with your opti>[...]

ANN's Daily Aero-Term (07.01.16): Terminal VFR Radar Service

A national program instituted to extend the terminal radar services provided instrument flight rules (IFR) aircraft to visual flight rules (VFR) aircraft.>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2016 Web Development & Design by Pauli Systems, LC