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TYWoolman
Topic Author
Posts: 406
Joined: Sat Jun 24, 2017 8:24 pm

Majors' claim to get "smaller" a merger case for the future?

Fri May 22, 2020 9:34 pm

I understand the majors have to get costs out and get efficient as there are no crystal balls (except on A.net, of course). But drastic measures are taking place and the majors will have a lot of capacity out of the marketplace when all said and done. Does this make the future case for mergers and acquisitions more palatable to government or will the proportionate market share of each stay the same casting doubt on easier approvals?
 
flyby519
Posts: 1544
Joined: Tue Jul 24, 2007 3:31 am

Re: Majors' claim to get "smaller" a merger case for the future?

Fri May 22, 2020 9:38 pm

My guess is it will depend on market share. That’s the big issue generally
 
TYWoolman
Topic Author
Posts: 406
Joined: Sat Jun 24, 2017 8:24 pm

Re: Majors' claim to get "smaller" a merger case for the future?

Fri May 22, 2020 9:44 pm

flyby519 wrote:
My guess is it will depend on market share. That’s the big issue generally


True. But airlines will be able to make a new case for reclaiming merger efficiencies and growth once again in the years ahead, especially when the budget airlines of today will be proportionately larger as well.
 
MrPeanut
Posts: 78
Joined: Fri Nov 23, 2018 8:36 pm

Re: Majors' claim to get "smaller" a merger case for the future?

Fri May 22, 2020 9:46 pm

TYWoolman wrote:
I understand the majors have to get costs out and get efficient as there are no crystal balls (except on A.net, of course). But drastic measures are taking place and the majors will have a lot of capacity out of the marketplace when all said and done. Does this make the future case for mergers and acquisitions more palatable to government or will the proportionate market share of each stay the same casting doubt on easier approvals?


All airlines are getting smaller. The total size of the pie has decreased. The question that remains to be seen is whether the major’s share of the total pie has decreased or if it remains relatively unchanged.
 
TYWoolman
Topic Author
Posts: 406
Joined: Sat Jun 24, 2017 8:24 pm

Re: Majors' claim to get "smaller" a merger case for the future?

Fri May 22, 2020 9:48 pm

MrPeanut wrote:
All airlines are getting smaller. The total size of the pie has decreased. The question that remains to be seen is whether the major’s share of the total pie has decreased or if it remains relatively unchanged.


Makes sense.

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