The heads of at least two legacy airlines still support industry consolidation, even if the concept has temporarily fallen out of fashion.
During conference calls last week, United(UAUA Quote) CEO Glenn Tilton and US Airways(LCC Quote) CEO Doug Parker both continued their strong support for airline mergers. The two carriers attempted one in 2000 but failed to secure Justice Department approval.
At the moment, merger momentum is lagging for a variety of reasons. The industry environment is reasonably strong, and mergers typically occur in a down cycle. Also, the ability to acquire bankrupt carriers and reduce costs in court has subsided as Delta(DALRQ Quote) emerged last week and Northwest(NWACQ Quote) prepares to do the same next month. ...
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