Tue, Jan 08, 2008
Analysts Think Carrier Could Kick Off Wave Of
Consolidation
Atlanta-based Delta Air Lines has put its plans to sell off
problematic regional subsidiary Comair on hold, renewing rumors
about a looming merger between Delta and a
carrier-to-be-named-later -- but strongly believed to be either
Northwest or United.
Citing unnamed sources, the Financial Times reports Delta
conducted preliminary talks with JPMorgan Chase regarding its
options for Comair, but opted to hold off retaining the firm until
a special committee of Delta directors and bankers has completed a
review of the airline's merger options.
That doesn't mean Delta isn't interested in selling off Comair,
though. "The sale of Comair is not imminent, but our position
hasn't changed in that we are always looking to maximize the value
of our assets," the airline said.
Analysts widely believe the US airline industry is moving
towards consolidation... and many feel Delta will lead the
charge.
As ANN reported, the November
2007 rumor of a looming merger between Delta and United -- later
found to have been planted by an investment group with stakes in
both airlines -- sent the industry into a brief frenzy, as
officials with both carriers denied holding talks.
Delta CEO Richard Anderson -- who, incidentally, once held that
same title at Northwest -- said last year he saw benefits in
consolidation, a marked departure from his predecessor. Former
Delta chief Gerald Grinstein, who led the carrier through its
battle to emerge from Chapter 11 bankruptcy, also fought off a
dogged hostile takeover attempt by US Airways.
Should Delta enter into a merger with one of the other five
"legacy" US airlines, analysts believe at least two remaining
carriers will also choose their partners, as it were -- which could
make 2008 a banner year for airline buyouts.
More News
Improper Installation Of The Fuel Line That Connected The Fuel Pump To The Four-Way Distributor Analysis: The airplane was on the final leg of a flight to reposition it to its home>[...]
Decision Altitude (DA) A specified altitude (mean sea level (MSL)) on an instrument approach procedure (ILS, GLS, vertically guided RNAV) at which the pilot must decide whether to >[...]
“With the arrival of the second B-21 Raider, our flight test campaign gains substantial momentum. We can now expedite critical evaluations of mission systems and weapons capa>[...]
Also: Potential Mars Biosignature, Boeing August Deliveries, JetBlue Retires Final E190, Av Safety Awareness Czech plane maker Bristell was awarded its first FAA Type Certification>[...]
Also: Commercial A/C Certification, GMR Adds More Bell 429s, Helo Denial, John “Lucky” Luckadoo Flies West CAF’s Col. Mark Novak has accumulated more than 1,000 f>[...]
NTSB Final Report: Evektor-Aerotechnik A S Harmony LSA
See All