First US Air might try to buy Delta.
Now United might try to buy Continental.
Then there is Airtran's hostile take-over attempt of MidWest...
Lastly Canada's Onex tries to buy Quantas.
What does this all mean?? Lets ask blog favorite Consultant, Mike Boyd:
Airline consultant Michael Boyd said a United-Continental combination, or any other combination for that matter, would not be good for consumers, as it would reduce competition. He described any offer by United as an effort to make "fast money.
Same Time Next Year
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It’s been nearly a year since I wrote about the problems that come from
having 11 bosses who are not on the same page about anything, as well as
suggestion...
4 months ago
8 comments:
I notice that too. Why does everyone want to merge with eachother all of a sudden? I've never seen anything like this before.
Think I missed one also about Quantas.
I didnt see anything about United and Delta, what i did see was US Airways trying to acquire Delta while Delta is still bankrupt. The new airline would then continue to fly under the Delta name.
Matt:
You are right--will change it right now.
Problem with these bankrupt airlines (or any BK business) getting a new life is that they come out of BK completely debt free and are therefore able to aggressivly compete with airlines that have not gone BK and have to pay the monthly nut on their debt
Why, all of a sudden, is every (or what seems like it) airline is wanting to merge? I have not heard of Quantas, but I'm sure they're in it, too. Also, one of the minor details, what is the merged airlines going to be called? AirMidwest? Why is a Canadian airline looking to buy an Australian airline? This doesnt make sense and its really confusing.
Dave, IMO, for lack of a better term, this is part of the natural selection process in competitive business environs.
The comm air travel business has excess capacity and this is how the weaker players are culled or sometimes it 's a merger of strong equals. Most businesses have finite lifes, except the business of gov't and in many cases regulated utilities.
Just look around us and see the changes in the last 15 years in the banking or retail sector. Spags, Peoples bank, WCIS, Bank Boston, Fleet, Mechanics bank, Zayres, caldor, Bradless, The Fair, The Big D etc
The weaker hands cannot go to the local politic establishment and ask for $195,000 handouts from you and I (assuming you live in Worc.)
I heard this morning on WBZ radio that Delta has declined to merge with USAirways
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