This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Delta: We Need Industry Consolidation

ATLANTA -- ( TheStreet) -- Delta (DAL - Get Report) CEO Richard Anderson said he wants to see another airline.

"Further industry consolidation will be overall quite good for Delta and quite good for the industry," Anderson said as he answered questions during the Delta earnings call on Wednesday. "Look at the current organizational construct of the industry: We need the next transaction to be complete. Then we will have a pretty rational organizational construct in the industry."

A potential merger between American (AAMRQ.PK) and US Airways (DAL - Get Report) is widely viewed as "the next transaction" in the airline industry. Anderson didn't mention the two carriers by name.

However, he addressed the consolidation issue shortly after President Ed Bastian noted that Delta has "had some share gains in recent weeks from some of the problems American has had, but they are relatively modest."

Additionally, when a reporter asked whether gains from consolidation might be offset by having a stronger competitor in the Southeast and trans-Atlantic, both areas where a combined US Airways/American would gain strength, Anderson noted that all of the airlines in Latin American have benefited from recent consolidation in that region.

As far as having to face a tougher competitor, Anderson declared: "We don't intend to give up any market share."

Also Tuesday, in a letter to members of the Allied Pilots Association, which represents American pilots, APA President Keith Wilson wrote that the unsecured creditors committee and the carrier have jointly requested a 30-day extension in the carrier's bankruptcy case.

"The prospective 30-day extension is not necessarily something that AMR management sought, but they may have been compelled to agree to it by the creditors," Wilson wrote. "Our advisers believe that prolonging the restructuring process increases the likelihood of a change of control."

Wilson added that if ongoing merger discussions between the two carriers don't prove productive "our advisers have indicated that US Airways management will most likely pursue an alternate strategy that wouldn't involve securing AMR management's consent."

-- Written by Ted Reed in Charlotte, N.C.

>To contact the writer of this article, click here: Ted Reed

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
LCC $0.00 0.00%
DAL $44.39 -1.68%
AAPL $126.41 -1.66%
FB $81.21 0.39%
GOOG $575.33 0.34%


DOW 18,135.72 +38.82 0.21%
S&P 500 2,101.04 +2.51 0.12%
NASDAQ 4,982.8090 +15.6680 0.32%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs