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Airline Mergers: An Across-the-Board Update

May 14, 2008 at 4:05 PM | 0 Comments

Forgive us if we haven't been breathlessly reporting all the latest merger gossip: All these rumors and anonymous sources have us more than skeptical. But since everyone seems to be involved in something these days, here's a cheat sheet for all the merger mania swirling in the industry:

Delta and Northwest: These two are getting together, pending approval from the US government. You can keep up on both carrier's plans at the pompously named newglobalairline.com. Oh, and before you believe the hype that nothing will change when they get together, Northwest CEO Doug Steenland just announced that, yes, they probably will be cutting some service.

American and Continental: Continental says it's happy to go it alone, but the carrier has also started chatting with AA and British Airways about combining operations. This wouldn't be your traditional merger, but the airlines might go so far as to sell each others tickets. (More feasible is a code-sharing agreement through OneWorld.) Continental has started its own merger website at co-industryconsolidation.com.

United and US Airways: Supposedly these two airlines are "closing in on a merger," if you believe this report in the Chicago Tribune. Given that this would create the country's most-hated (and probably most awful) airline, we can't say it's a good idea. Then again, Continental and Delta both had the sense to rebuff United. Will US Air do the same?

Southwest and ???: The LCC just borrowed a big pile of money and it's clearly up to something. After its chances with ATA went south, could Southwest still be shopping for a partner? One analyst thinks so.

Related Stories:
· Airline Mergers coverage [Jaunted]

[Photo: matt.hintsa]

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