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 05.18.15

Airborne 05.19.15

Airborne 05.20.15

Airborne 05.21.15

Airborne 05.15.15

Airborne Hi-Def On YouTube

Airborne 05.18.15

Airborne 05.19.15

Airborne 05.20.15

Airborne 05.21.15

Airborne 05.15.15

 

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 05.21.15: Unlawful Photography? REALLY?, VA Flt Benefits, Pilatus 5M

Also: Aerion Takes Orders, API Partner EAA, 'Fly Along' Case Resolved, BASE Jump Tragedy, Electromagnetic Catapult, Gulfstream G650ER, Piper M500 With the FAA still stuck in the mu>[...]

AD: Airbus Helicopters (Previously Eurocopter France) Helicopters

AD NUMBER: 2015-10-05 PRODUCT: Airbus Helicopters (previously Eurocopter France) Model AS365N3, EC155B, and EC155B1 helicopters with an external life raft in the footsteps with cer>[...]

ANN's Daily Aero-Linx (05.22.15)

MILAVIA MILAVIA, military aviation, is what you are going to find here! The site starts with modern combat aircraft, focusing on main fighters, ground attack aircraft and bombers t>[...]

ANN's Daily Aero-Term (05.22.15): Flap Deflection Angle

The angle between the deflected flap and the chord line.>[...]

Aero-News: Quote Of The Day (05.22.15)

“The restrictions that the town has adopted, by its own calculations, would prohibit a significant share of all airport operations.” Source: Excerpt from a complaint co>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2015 Web Development & Design by Pauli Systems, LC