Let the Airline Mergers Begin
Delta Airlines has rejected a hostile $8.53 billion takeover bid from U.S. Airways, saying that it much prefers to remain independent. But Delta, and a lot of other airlines, might be doing consumers a favor by joining a consolidation push, says Anthony Bradley. “Given the nature of the industry today, proper stewardship of commercial airlines implies reform,” he writes.
Read the commentary here.
Read the commentary here.
Comments
#1 2006-12-06 23:58 (Reply)
You do not have your facts straight. Both America West and US Airways are recipients of the ATSB loan available after 9/11. The 100’s of millions of dollars loaned to these two poorly run airlines shortly after 9/11 saved their hide. These loans still have yet to be settled. Check the latest sec 10-k filings for the "new" US Airways. Doug Parker is using tax payer loans to rid the industry of a 77 year old arline. After you digest these facts, please contact me and I will enlighten you on what else is actually going on in the industry. Very poor analysis.
#2 2006-12-07 00:12 (Reply)
Sir,
YOu mentioned in your commentary about possibly being thwarted by labor unions or the government. What are each doing to prevent the merger?
#3 2006-12-07 08:59 (Reply)
A merger between two failing companies with broken business models isn’t going to do any good in the long run. All you are going to end up with is a large company with a still broken business model that will be back in bankruptcy protection in a few years. The key is to create and develop a new business model for the legacy airlines, not merging two failing operations together.
#4 2006-12-13 15:00 (Reply)
We have been watching this issue carefully and are very concerned about what happens to the passengers and their assets...including frequent flyer miles. Are we getting closer to oligopoly? We have provided helpful SEC and airline messaging information on our blog Aircomplane.com www.aircomplane.com.