Robert Mann [HPN-NY]
(AVSIG Member)
11/16/06 07:40 AM
Re: USAir to Buy Delta?


<<Which Legacy Carriers are next for Consolidation? or in other words, reducing the numbers of competing US market hubbing systems.>>

There's talk about a UA/CO deal, and AA/NW. Nothing more than talk right now, but interest has been expressed.

Yes, it would reduce the number of competing market hubbing systems, and that may very well be the path to solvency and profitability in the industry. The biggest problem plaguing the industry for the last three decades has been overcapacity. These mergers will reduce capacity. Fares will likely go up too. While that may not seem to be good news for consumers, it is in the consumers' long term best interest that airlines are profitable.

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