Skip to: Content
Skip to: Site Navigation
Skip to: Search
SUNDAY, NOVEMBER 8, 2009
| Subscribe to Newser's RSS feeds RSS | Follow Newser on Twitter Twitter


0

United and Continental May Be Next to Merge

Delta-Northwest deal likely to spark more consolidation

Share

(Newser) – The Delta-Northwest merger will create the world's biggest airline—but that title could fall before the ink is even dry on the deal as industry pressures force other carriers into shotgun weddings, the Houston Chronicle reports. Analysts believe United and Continental would be a good match and a deal between the two is widely expected, possibly in a matter of weeks.

The creation of the merged airline behemoths, triggered by record fuel prices, will change the face of the industry, attracting close attention from antitrust regulators and leaving American Airlines, currently the biggest US carrier, slipping down the rankings. "American is like the last one at the dance," said an industry expert. It "might hook up with a smaller carrier."

Delta Airlines, Northwest Airlines and Hawaiian Airlines signs are posted at San Francisco International Airport in San Francisco, Monday, April 14, 2008.
Delta Airlines, Northwest Airlines and Hawaiian Airlines signs are posted at San Francisco International Airport in San Francisco, Monday, April 14, 2008.   (AP Photo/Paul Sakuma)
A Continental Airlines plane is refueled at Houston's Bush Intercontinental Airport in this Oct. 16, 2007 file photo.
A Continental Airlines plane is refueled at Houston's Bush Intercontinental Airport in this Oct. 16, 2007 file photo.   (AP Photo/Pat Sullivan, file)
A United Airlines plane heads away from the gates of the B concourse at Denver International Airport in this Aug. 24, 2006 file photo.
A United Airlines plane heads away from the gates of the B concourse at Denver International Airport in this Aug. 24, 2006 file photo.   (AP Photo/David Zalubowski, file)
A Northwest Airlines plane takes off from Minneapolis St. Paul International Airport in Minneapolis Monday April 14, 2008.
A Northwest Airlines plane takes off from Minneapolis St. Paul International Airport in Minneapolis Monday April 14, 2008.   (AP Photo/Andy King)
« Prev« Prev | Next »Next » Slideshow
OFF THE GRID
11.6.09
Galleon Scandal: Shocked, Shocked by Insider Trading
11.5.09
Rupert Murdoch Is Mad but Cute
0 comments
VIEWING:
 
LEAVE A
COMMENT Comment Policy
Facebook ConnectPost this comment to Facebook?

After connecting you will have the option to post your comment on your Facebook profile.

 

Related Newser Stories

40 Stories

 More Cuts Await 
 Slumping Airlines 

Delta, AA among carriers who can't cover costs

Jun 12, 09 9:09 AM CDT
(Newser) - As rising oil prices and sluggish demand continued to hammer the airline industry, Delta, American, and several other carriers forecast further cuts to service yesterday, reports the Wall Street Journal. Despite massive reductions in service, CEOs said at an industry meeting that they still aren't covering costs. "Earnings are... More »

MORE ABOUT:
airline industry • recession • airline • American Airlines • Continental • Delta • Southwest Airlines • business travelers • swine flu • H1N1 virus

ANALYSIS

Aging Airlines Can't Catch Up to Younger Rivals

Recent changes haven't helped 'legacy' carriers

Apr 7, 09 8:52 AM CDT
(Newser) - Despite many rounds of cost-cutting, so-called legacy airlines—United, Delta, US Airways—still face costs 35% higher than low-fare carriers like JetBlue and Southwest, the Wall Street Journal reports. The younger outfits have maintained a “cost gap” analysts thought their older peers could close over time. For one thing,... More »

MORE ABOUT:
Delta Air Lines • JetBlue • Northwest Airlines • US Airways • United Airlines • Frontier Airlines • AirTran • Southwest Airlines • Continental Airlines • Air Canada • fuel costs • airlines • airplanes • low-fare carriers

 After Turbulent 
 Year, Airlines See 
 Smoother 2009 

Falling fuel prices and capacity better in line with demand will help profits

Jan 21, 09 9:53 AM CST
(Newser) - The nation’s airlines—which scrambled to retask fleets and ground fuel-guzzling aircraft last year as energy prices rose and passenger miles dropped—are likely to have a smoother flight in 2009, reports the Wall Street Journal. Reduced capacity has allowed them to better match supply and demand, and falling... More »

MORE ABOUT:
airline industry • United Airlines • American Airlines • corporate earnings • Southwest Airlines

Shareholders OK
Delta-Northwest Merger

Deal awaits approval from antitrust regulators

Sep 25, 08 2:45 PM CDT
(Newser) - Shareholders of Delta and Northwest voted nearly unanimously today to approve the airlines' merger, the Atlanta Journal-Constitution reports. With shareholders in agreement, federal antitrust regulators must now approve the deal. A Justice Department decision is expected late this year, but labor issues remain. Dozens of workers protested today outside the... More »

MORE ABOUT:
airline industry • Delta Air Lines • mergers and acquisitions • Northwest Airlines • Delta Airlines • mergers • International Association of Machinists and Aerospace Workers

BA, American Hope 3rd Time
Is the Charm

Carriers predict US antitrust approval for alliance first aired in '96

Aug 15, 08 6:48 AM CDT
(Newser) - American Airlines and British Airways are making a third stab at a joint business agreement—and this time, reports the New York Times, the deal might actually go through. American, BA, and the Spanish carrier Iberia are applying for antitrust approval to form a global network. The CEO of American's... More »

MORE ABOUT:
airline industry • merger • British Airways • airline • American Airlines • Open Skies Agreement • Iberia

40 Stories


United, Continental 'ready to do a deal'
Reuters

Merger frenzy likely to leave passengers worse off
Huffington Post

Executives say airlines need to merge to survive
Minneapolis Star Tribune


Business 
TwitterFollow @NewserBusiness on Twitter

 
airline industry • merger • Northwest Airlines • United Airlines • airline • American Airlines • Delta Airlines • Continental Airlines • fuel costs

from our news partners