“Reuters' 2010 Travel and Leisure Summit brings talks of US mergers - Cheapflights.com” plus 1 more |
| Reuters' 2010 Travel and Leisure Summit brings talks of US mergers - Cheapflights.com Posted: 25 Feb 2010 07:25 AM PST Message from fivefilters.org: If you can, please donate to the full-text RSS service so we can continue developing it.
United and US Airways are both part of the Star Alliance. Merging with an airline from a different country would open up route lists, but would do little to ease the strain of the U.S. hubs that are all "chasing the same passenger," Reuters reports. Domestic clutter has heightened within connecting airports around the country, and many believe that consolidating can alleviate the struggle and help the domestic market. Some think that consolidation is the best way to make the aviation industry become profitable again, after a $50 billion collective loss in the past 10 years - $11 billion of that stemming from 2009 alone. Some of the country's largest airlines are also trying their hand in merging. Delta acquired NWA this year, and American Airlines recently strengthened its tie with financially-troubled Japan Airlines to expand its route lists in Asia. Five Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. |
| ALPA chief sees more airline mergers - Reuters Posted: 24 Feb 2010 05:33 PM PST Message from fivefilters.org: If you can, please donate to the full-text RSS service so we can continue developing it. NEW YORK (Reuters) - Consolidation in the U.S. airline industry is "inevitable," the president of the Air Line Pilots Association union said on Wednesday. Capt. John Prater told the Reuters Travel and Leisure Summit that under current circumstances, a combination between United parent UAL Corp (UAUA.O) and Continental Airlines Inc (CAL.N) made more sense, as the carriers have little route overlap. However, Prater added that he had no indication from the companies that they were having merger discussions. This week, executives at United parent UAL Corp (UAUA.O) and US Airways Group (LCC.N) told the summit their carriers were open to consolidation opportunities. Prater, who said that ALPA was in bargaining at half of the 38 airlines where it represents pilots, said his union would support mergers that save jobs. "We're for the right consolidation, consolidation that actually protects and enhances jobs and creates a profitable carrier," he told reporters in New York. He said potential catalysts for a next round of airline mergers could include a big rise in gas prices or perceived success of Delta Air Lines Inc (DAL.N), which acquired Northwest in 2008, against rivals. That merger made Delta the world's biggest carrier. Prater added that mergers could also come among regional carriers, which he said will face a pilot shortage over the next couple of years as workers defect to larger carriers. "I think we'll see some consolidation in the regional industry and it'll be for efficiencies," he said. Laura Wright, Southwest Airlines (LUV.N) chief financial officer, also said the regional airline industry could be poised for transformation. "There's no question that the economics of their operating model have been affected greatly by energy prices," said Wright. Southwest does not work with regional airlines. Prater said ALPA, the world's largest pilots union, was optimistic about being able to negotiate pacts that would help recoup some of the wages and benefits pilots lost in the past decade as bankrupt airlines were able to extract concessions. Prater also said that he felt that monitoring pilots in the cockpit would not improve flight safety. (Additional reporting by Kyle Peterson and Deepa Seetharaman; Editing by Phil Berlowitz, Bernard Orr) Five Filters featured article: Chilcot Inquiry. Available tools: PDF Newspaper, Full Text RSS, Term Extraction. |
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