Future Mergers

Aviation Airlines
1

It looks as if the future of aviation could be filled with mergers. As we all know, there is no benefit to a merger (except upper management). Jobs are lost, the combined airline usually is never as big as the 2 airlines apart were (as competition is eliminated), hubs are eliminated and fares go up.

Some airlines thoughts:
Steenland and other airline CEOs have signaled that the industry could be on the verge of a new round of mergers that might swallow up Northwest

United Airlines’ CEO Glenn Tilton said last week that he expects the airline industry to consolidate in order to survive the competitive environment and lower air fares.

The chief executive of Delta Air Lines said Tuesday a merger could be in the best interest of the nation’s third-largest carrier

My question: What mergers are most probable?
side question: Can any of the legacy carries merge (with all the antitrust issues of big carries)?

2

SWA <<<Aloha

3

Unless they could get a very good deal, I don’t see Southwest merging Aloha into its system. I definitely don’t see Aloha merging Southwest into its system.

The only thing Southwest would want in a merger with Aloha would be its 737s. Even then it would only want 8 of them (the -700s; the other 16 are -200s).

Southwest already has flights to Hawaii through its codeshare with ATA so there would be no reason for it to start flights itself to the Aloha State.

4

United and Delta talking merger

Don’t see this option on the poll…
http://www.breitbart.com/article.php?id=D8STL6L00&show_article=1

5

I think UA + DL would be unfair. They would be so huge and of course competition will be eliminated (bye to SLC and perhaps IAD and say hello to higher fares :imp: ). If they merge, it will cause a domino effect and you will see NW, CO, US and AA scrambling to find a merger partner…then were down to 3 airlines :unamused: :unamused: :unamused:

Of course, I don’t know how the DOJ will allow this unless they give up lots of slots.

6

eventually i think CO/NW a possibility