This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Delta May Spark Merger Mania

CHARLOTTE, N.C. -- Airline industry consolidation has moved a step closer to reality, now that Delta (DAL - Get Report) has made clear that it wants to be a player.

"We do believe the right transaction, certainly for Delta, would add tremendous value," Ed Bastian, the carrier's president, declared last week, as he discussed mergers at a Wall Street investor conference. "We're looking at the question [in] real time. It's a front burner issue for us."

Bastian also said, "Delta views itself an acquirer, not a seller." In tone, he went beyond statements made last month by Delta's new CEO Richard Anderson, who said, on his first earnings call, that the carrier is open to a deal.

With Delta in, three of the six legacy carriers are now publicly committed to pursuing merger possibilities. US Airways (LCC) CEO Doug Parker, one of two leading advocates for consolidation, has presided over a merger between US Airways and America West, as well as a failed bid for Delta.

UAL (UAUA) CEO Glenn Tilton, the other supporter, regularly calls for consolidation, although so far he hasn't gotten anywhere despite approaches to Continental (CAL - Get Report), Delta and possibly others.

Parker offered fresh perspective on the issue last week, telling the same investor conference that US Airways may have a diminished role because it is the smallest legacy carrier.

"It's not as if we can force this to happen at this point. Being the sixth of the big six, we're not going to be somebody's first choice," he said. However, he added, "It's hard to marginalize $11 billion in revenue."
1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
LCC $0.00 0.00%
CAL $29.64 0.00%
DAL $46.87 0.00%
AAPL $118.03 0.00%
FB $105.41 0.00%


Chart of I:DJI
DOW 17,813.39 +1.20 0.01%
S&P 500 2,088.87 -0.27 -0.01%
NASDAQ 5,116.1430 +13.3350 0.26%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs