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

Posted: Fri May 22, 2020 9:34 pm
by TYWoolman
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?

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

Posted: Fri May 22, 2020 9:38 pm
by flyby519
My guess is it will depend on market share. That’s the big issue generally

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

Posted: Fri May 22, 2020 9:44 pm
by TYWoolman
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.

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

Posted: Fri May 22, 2020 9:46 pm
by MrPeanut
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.

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

Posted: Fri May 22, 2020 9:48 pm
by TYWoolman
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.