Consolidation among airlines seems to be the order of the recent years. Delta Air Lines took over Northwest Airlines. Republic bought Midwest Express and Frontier. United and Continental decided to merge. Now what?
Doug Parker, CEO of US Airways, noted that he is happy with his airline’s position in the merger game. As he sees it, US Airways will be part of the next consolidation and will be able to add value to another larger airline by integrating their hub-and-spoke network with another stronger system of hubs.
Alaska Air is another airline that may be in line for a takeover. Alaska already has a very cozy relationship with American Airlines that has been left out of the merger parties. Some analysts feel they have a good, merger-friendly route structure.
Ray Niedl, an independent airline analyst and consultant, said Alaska could be an option should American Airlines want a merger partner to better compete with a combined United-Continental and Delta Air Lines, the current airline industry leader.
Finally, what about JetBlue? This airline has recently formed a travel alliance with American Airlines. Some have wondered whether JetBlue might become merger fodder. From my point of view, the airline, with its extensive network linking to JFK in New York can probably do better by setting up multiple arrangements with other airlines and serve as a major feeder to other airlines international networks. So far JetBlue has arrangements with Aer Lingus and Lufthansa (who owns 25 percent of the JetBlue) as well as American Airlines.
Any ideas out there about what the next airline to merge will be?
Charlie Leocha is the President of Travelers United. He has been working in Washington, DC, for the past 14 years with Congress, the Department of Transportation, and industry stakeholders on travel issues. He was the first consumer representative to the Advisory Committee for Aviation Consumer Protections appointed by the Secretary of Transportation from 2012 through 2018.
