Not less than a week after the Transportation Department acquiesced to archaic Liberal demands for the protection of domestic airline carriers from foreign competition (who wouldn't be "astronomically" content to pay for a seat on a Richard Brawnson-operated airline?), the recent rise of the airline stocks has nearly single-handily buoyed the NYSE. Carey and Trottman of the Wall Street Journal on Thursday let it be know that the "hats-off" (my quotes) performance of US Airways has caused other merger target acquisitions' stock prices to rise.
The US Airways-American West combination has undoubtedly caused long overdue speculation in the mergers-and-acquition market. However, every rose has its thorn, and this case its Delta who is sore like a thumb (isn't enough that they've gotten government approval to send their pilots on longer flights this past week? By the way, who benefits from the extended retirement age proposed before the Democratic Congress yet this week?). Delta doesn't seem to think that the all of the madness should continue while they're sidelined from bankruptcy and have voiced their opposition to the threatening competition. Nothing is set in stone, as Leslie Nielsen (in the 1980's Airplane) might say: "...don't call me shirley."
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->Delta doesn't seem to think that the all of the madness should continue while they're sidelined from bankruptcy and have voiced their opposition to the threatening competition.<-
Isaac, that statement is not entireley correct. Just in November, a half-baked acquisition was announced for Delta by US Airways. The competition is threatening, but not in the manner in which you have stated. What puzzles me is if Delta feels "excluded," they'd only benefit by the combined entitiy. Instead, they've announced their intentions to go at it on their own.
The market is very much fragmented, and the opprotunities appear limited, save the merger-approach. I'm a cheap traveler, so my purchasing decisions are not likely to be persuaded by any amount of memorabilia, movies/television, wine, or other lures offered inflight. However, I might like the use of a bathroom every now and again. With this said, I'd not know how to profitably restructure the airlines, other than by a merger.
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