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United States
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Airline merger rumors flying fast and furious
Reports that US Airways looked into Delta’s interest in a merger have sparked speculation about other airline consolidations or buy-outs.
“The most likely candidates to pursue Delta include United and Northwest,” wrote The New York Times.
“A merger might help United overcome its slow start since exiting bankruptcy earlier this year. And a merger could help Northwest raise capital for its planned exit early next year,” the newspaper speculated.
Neither airline commented on the report.
Despite the difficulties of mergers, US Air and America West’s joint operation appears to be progressing relatively smoothly, say industry observers.
The rumor that helped fuel further merger speculation was promoted by a story that US’s CEO Doug Parker asked Delta CEO Gerard Grinstein this summer about a merger, as reported in The Wall Street Journal.
Mr Grinstein, however, was reported to have little interest because his company wanted to stand-alone after leaving bankruptcy.
Report by David Wilkening
David
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