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/NBAA2014 10.20.14 ** HD iPad-Friendly -- Airborne/NBAA2014 10.20.14 **
** Airborne 10.17.14 ** HD iPad-Friendly -- Airborne 10.17.14 **
** Airborne 10.15.14 ** HD iPad-Friendly -- Airborne 10.15.14 **

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 at NBAA--10.20.14: HondaJet, Honeywell Forecast, Gulfstream's G500/G600

Also: Garmin's ADS-B For BizAv, R44s For Jordan, Textron Aviation, Hartzell Props, Clarity Aloft Pro Plus At a news conference early Monday at the 2014 NBAA convention, HondaJet sa>[...]

Airborne 10.17.14: Enstrom Delivers, Flight School Scandal, NBAA2014

Also: Rare O-46 Rebuild, Valor Unveiled, OK's Anti-Fly-In Airport, FAA Screw-Ups, The first Enstrom Model 480B-G has been delivered to Rick Boswell of New Hampshire with the Garmin>[...]

Airborne at NBAA--10.20.14: HondaJet, Honeywell Forecast, Gulfstream's G500/G600

Also: Garmin's ADS-B For BizAv, R44s For Jordan, Textron Aviation, Hartzell Props, Clarity Aloft Pro Plus At a news conference early Monday at the 2014 NBAA convention, HondaJet sa>[...]

Game-Changing NBAA2014 Sponsor Mid-Continent Instruments and Avionics!

Innovation Brings Safe, Certified, Nanophosphate® Lithium Batteries To New Business Aircraft True Blue Power is the first company in the world to achieve FAA TSO and EASA ETSO >[...]

ANN FAQ: Feel The Propwash!

Get Aero-News Delivered To Your E-Mail We know you, like many of our readers, make it a point to check out the latest news and information daily on Aero-News... but did you know th>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

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