What would US Airways want from Delta

deltawatch

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Aug 20, 2002
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Industry leaders such as UAL Corp. (NASDAQ:UAUA - News) Chief Executive Glenn Tilton and US Airways Group (NYSE:LCC - News) Chief Executive Doug Parker have been outspoken proponents of consolidation.

Grinstein said Tilton had talked to him about a possible merger more than 18 months ago, while Parker had asked him earlier this year, but he had told them that he was not interested.

"I told (Parker) that we did not want to have any discussion like that," Grinstein said. "Our plan is to come out independent and stand-alone."

But Grinstein added that he did expect a different form of consolidation to happen in the industry, where one airline could buy parts of another's business.

"I don't think it is going to look very different two years from now in terms of the number of carriers, the number of hubs and the scale of them," Grinstein said.

Grinstein also added that he plans to increase flying to Latin America, Africa, Asia and Europe. Sounds like he wants to unload some of the domestic over capacity the threw at us for 15 years. Who wants it? Jet Blue, Virgin America, Airtran?

Hang on fellas, there maybe more downward pressure on wages and cost if a large chunk of Delta goes to one of the above.
 
Grinstein also added that he plans to increase flying to Latin America, Africa, Asia and Europe. Sounds like he wants to unload some of the domestic over capacity the threw at us for 15 years. Who wants it? Jet Blue, Virgin America, Airtran?

Hang on fellas, there maybe more downward pressure on wages and cost if a large chunk of Delta goes to one of the above.


deltawatch,


interesting, and timely, comments...

A couple of quarters ago, AirTran CEO said on the conf call something to the effect of..."being a domestic feeder/partner to one of the legacy carriers"...

Would of course be a little ironic if AirTran became a Delta feeder, no?! ;) ...or maybe jetBlue...LOL :)

Virgin America sounds logical...(But when are they getting off the ground?)


SoftLanding