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JetBlue CEO On The US Bid For DL

Fri Jan 05, 2007 7:20 am

Neeleman was talking at ORD today and made a response on the US bid for DL saying that if this goes therw that many others will follow.

Reuters predicting no merger between CO and UA if the US and DL deal does not go threw

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RE: JetBlue CEO On The US Bid For DL

Fri Jan 05, 2007 10:10 am

Quoting QXatFAT (Thread starter):
Reuters predicting no merger between CO and UA if the US and DL deal does not go threw

I'm not sure they're related... But the trend would be there.

More mergers are likely even though the history of airline mergers has been "spotty." Cest la vie.

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RE: JetBlue CEO On The US Bid For DL

Fri Jan 05, 2007 10:19 am

these kind of comments are actually just what DL wants to hear.... that there is no need for consolidation if everyone stays apart.

given that every network airline is/has reporting/reported at least some profits this year, capacity is being pulled down, and LFs are at record levels, it is might hard to convince gov't leaders that there is a need for consolidation in the industry. Washington is NOT interested in seeing any airline report higher profits if it comes at the expense of low fares and more service. given that every merger will be fueled at least partly by capacity reductions, it will take a downturn in the industry before Washington warms up to the idea of consolidation.

you might want to see my post on the role of mergers in the industry but I don't think anyone should expect to see any mergers in the next couple years unless the bottom falls out of the industry.

at the same time, it's interesting that B6 is even talking about mergers. perhaps they see one in their future? US and DL don't overlap in B6's NYC markets so consolidation among those two woudn't help B6.

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