Delta, US Airways Among AMR Suitors | Aero-News Network
Aero-News Network
RSS icon RSS feed
podcast icon MP3 podcast
Subscribe Aero-News e-mail Newsletter Subscribe

Airborne Unlimited -- Most Recent Daily Episodes

Episode Date

Airborne-Monday

Airborne-Tuesday

Airborne-Wednesday Airborne-Thursday

Airborne-Friday

Airborne On YouTube

Airborne-Unlimited-05.05.25

Airborne-NextGen-05.06.25

AirborneUnlimited-05.07.25

Airborne-Unlimited-05.01.25

AirborneUnlimited-05.02.25

Tue, Jan 17, 2012

Delta, US Airways Among AMR Suitors

Analysts Worry Delta + AMR Might Be Too Big

As Delta Airlines, US Airways and a private equity firm called TPG Group appear to be mulling bids to take over struggling American Airlines, business experts are weighing in on who might prevail, and wondering if anti-trust regulators will go along.

The Wall Street Journal Thursday reported the interest by the three prospective bidders. Delta and US Airways have declined comment, but the Atlanta Journal Constitution reports we may be seeing the end game of airline consolidation which began in the US with deregulation in 1978. Richard Gritta, a University of Portland finance professor, tells the paper about 160 airlines have failed or been absorbed in mergers since the feds relinquished direct control over routes and fares.

When Delta merged with Northwest, it became the world's largest airline. That distinction lasted until United and Continental merged. With an acquisition of American, Delta would again be number-one, and control about a third of the US market and an extensive international network. That would raise the specter of a reduction in scheduled flights on some routes, and higher prices for consumers.

Gritta tells the AJC, “I would say the concentration in this industry is getting dangerously high. If I were [antitrust regulators] I would shoot it down.”

Bob Mann, an airline consultant based in Port Washington, NY, agrees that prices could rise, but notes American will almost certainly have to be acquired by a competitor to survive. "If American were to become smaller after a bankruptcy, it certainly raises questions as to its continuing viability. It’s not competitive with Delta’s or United’s network as it stands pre-bankruptcy, let alone as a smaller carrier."

George Hamlin, a consultant based in Fairfax, VA, worries that if Delta acquired American, it might become "too big to fail." He worries the company would represent such a big piece of the overall economy that financial trouble could require a federal bailout. “From a policy standpoint, this is going to require a really hard look.”

FMI: www.aa.com/i18n/amrcorp/corporateInformation/facts/amr.jsp

Advertisement

More News

ANN's Daily Aero-Term (05.05.25): Circle To Runway (Runway Number)

Circle To Runway (Runway Number) Used by ATC to inform the pilot that he/she must circle to land because the runway in use is other than the runway aligned with the instrument appr>[...]

ANN's Daily Aero-Linx (05.05.25)

Aero Linx: National Aviation Safety Foundation (NASF) The National Aviation Safety Foundation is a support group whose objective is to enhance aviation safety through educational p>[...]

NTSB Prelim: De Havilland DHC-1

At Altitude Of About 250-300 Ft Agl, The Airplane Experienced A Total Loss Of Engine Power On November 6, 2024, at 1600 central standard time, a De Havilland DHC-1, N420TD, was inv>[...]

Classic Aero-TV: The Boeing Dreamliner -- Historic First Flight Coverage

From 2009 (YouTube Edition): Three Hour Flight Was 'Flawless' -- At Least, Until Mother Nature Intervened For anyone who loves the aviation business, this was a VERY good day. Afte>[...]

Airborne-NextGen 05.06.25: AF Uncrewed Fighters, Drones v Planes, Joby Crew Test

Also: AMA Names Tyler Dobbs, More Falcon 9 Ops, Firefly Launch Unsuccessful, Autonomous F-16s The Air Force has begun ground testing a future uncrewed jet design in a milestone tow>[...]

blog comments powered by Disqus



Advertisement

Advertisement

Podcasts

Advertisement

© 2007 - 2025 Web Development & Design by Pauli Systems, LC