Post from November 16th, 2006’s Merger Rumor de jour Linky
I predicted then that USAirways’ $8,000,000,000 buyout would fall through. I don’t recall, but seemingly I also had a lot of fun going through the hypotheticals of the merger…
The differences today?
-Gerald Grinstein, a major proponent of a standalone Delta, is no longer CEO.
-The buyout partner isn’t some two-bit airline, but one of the largest in the world.
-$100 oil is a reality, and not a distant nightmare.
I don’t know if Delta will merge with United, (even if they wanted to, the anti-trust pressures of creating the world’s largest airline would be massive) but it seems that here is a lot of internal and external pressure for market consolidation…and market consolidation is rarely ever good news for the consumer.