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.