There’s no wonder airline CEO’s want consolidation. Mergers lead to less competition, fewer seats, and higher prices.
They also mean less pressure to maintain the value of their miles.
Here’s a quick look at America’s “Big 6” carriers merger prospects:
Airlines are listed in order of size.
AA: Likely to look for a merger partner only in response to another merger or to break up a merger. Very likely to try to block any mega-mergers via anti-trust pressure.
Main Hubs: Chicago (ORD), Dallas (DFW), Miami (MIA)
Primary aircraft manufacturer: Boeing
Alliance: OneWorld.
Key strengths: World’s largest airline. AAdvantage is the first, the largest, and arguably the most generous frequent flyer program in the world.
Most likely partners: Continental, Delta.
United: Desperately seeking a partner since emerging from bankruptcy. CEO Glenn Tilton is the industry’s biggest proponents of consolidation.
Main Hubs: Chicago (ORD), Denver (DEN), Los Angeles (LAX), S. Francisco (SFO), Washington D.C. (IAD)
Primary aircraft manufacturer: Airbus and Boeing
Alliance: Star Alliance.
Key strengths: Trans-Pacific presence. Mileage Plus is right behind AAdvantage in terms of worth/size.
Most likely partners: Anyone!
Delta: Investors are pressuring to look for merger candidates.
Main Hubs: Altanta (ATL), Cincinnati (CVG), NYC (JFK), Salt Lake City (SLC)
Primary aircraft manufacturer: Boeing
Alliance: SkyTeam.
Key strength: Trans-Atlantic presence.
Most likely partners: AA, Continental, Northwest.
Continental: Northwest own a “golden share” of Continental that means Northwest will have to approve any Continental merger move that requires shareholder approval.
Main Hubs: Cleveland (CLE), Houston (IAH), Newark (EWR)
Primary aircraft manufacturer: Boeing
Alliance: SkyTeam.
Key strengths: Trans-Atlantic presence. NY area hub with full domestic/international network.
Most likely partners: AA, Delta, Northwest.
Northwest: Worst labor relationships in the industry, considered a last-resort partner by other airlines.
Main Hubs: Detroit (DTW), Minneapolis (MSP), Memphis (MEM)
Primary aircraft manufacturer: Airbus and Boeing
Alliance: SkyTeam.
Key strength: Trans-Pacific presence.
Most likely partners: Continental, Delta, United.
USAirways: Still struggling to overcome effects of the American West-USAirways merger.
Main Hubs: Charlotte (CLT), Las Vegas (LAS), Philadelphia (LAX), Phoenix (PHX)
Primary aircraft manufacturer: Airbus and Boeing.
Alliance: Star Alliance.
Key strengths: —
Most likely partners: United.
Interesting thought I had, what happens if airlines merge? What happens to mileage?
In the past, mileage has pretty much been honored by the new airline.
But they don’t have to!
Interesting to see how things played out,
You called the northwest delta one