When The Dust Settles, Expect Only Three Major Carriers Left Standing

It's the kind of thing that shakes up an industry -- more so if it comes from an industry icon. US Airways CEO David Siegel, fresh from bankruptcy court, predicts a future where just three major airlines rule the skies, along with a "swarm of low-cost carriers" as consumers demand more miles to the wallet.

"I see a world where there are three strong hub-and-spoke carriers providing international service and broad networks that connect small, medium and large markets, and then a swarm of low-cost carriers battling it out in high-density markets," Siegel told the Potomac Officers' Club, a gathering of business leaders in the nation's capital.

Siegel predicted the "swarm" of low-cost airlines will eventually take over shuttle routes like New York-Washington, a route currently championed by US Airways.

In fact, Siegel didn't really say where his airline fits in the picture he paints. Nor did he say which three airlines would survive the huge shake-out he predicts. But he did say US Airways is trying to position itself for the best possible deal it can get.

"When the inevitable forces of consolidation kick in, it is equally important that we have a competitive cost structure," he said. "Otherwise, we will be the awkward teenager at the school dance, hoping someone will come talk to us, but going home disappointed and lonely."

FMI: www.usairways.com