wwiiairliner
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More and more noise around this subject lately...
Airline Consolidation
- Thread starter wwiiairliner
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USA320Pilot
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There are a couple of new reports regarding the airline industry that may have an effect on M&A actvity, which I have posted below:
Airline merger gossip is flying - The speculation is based on the fact that many larger carriers are profitable again
Click here for the story.
US delays plan to ease limits on airline investment
Click here for the story.
Best regards,
USA320Pilot
Airline merger gossip is flying - The speculation is based on the fact that many larger carriers are profitable again
Click here for the story.
US delays plan to ease limits on airline investment
Click here for the story.
Best regards,
USA320Pilot
wwiiairliner
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People are talking about USAir and Airtran???
FlyUs
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There is nothing Airtran has that would help US.
Where on earth are you getting that?
wwiiairliner
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The new USAirways like the old one is entirely dependent on a US domestic network. Parker has 2 choices: either consolidate the domestic network to the best he can, or go int'l. in either cases, he needs to acquire somebody to achieve the strategy...
SoftLanding
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Not so sure if US Airways will buy AirTran, but at the same time, don't believe any of the legacy carriers will merge. Obviously Delta and Northwest are exceptions, because of CH 11.
If anything, the legacy carriers will pick Alaska/jetBlue and/or AirTran.
This will result in firmer pricing by virtue of stopping/slowing down the super-fast expansion of AAI and JBLU, leaving Southwest the only airline with a rather fast expansion. BTW, Southwest is actively looking for B737-700, and AirTran has a loaded orderbook. Also, AirTran's ATL hub might be interesting...(Would US Airways be interested in ATL? Why/why not?)
This picture could/would change if the US Gov would ease foreign control, but this might be a moot point sinse President Bush and the Republicans seems to be back-tracking on their so-called "free-trade", which at this time it seems the Socialists of Europe wants (so they say, at least).
If foreign control is eased, expect fighting for airlines, StarAlliance/OneWorld/SkyTeam be damned!
SoftLanding
