US airline M&A speculation grows: do market realities support a new wave?
There's been a lot of recent chatter in the US airline industry about potential consolidation.
First, a report that JetBlue Airways was exploring the viability of a merger spurred a surge of speculation regarding a potential suitor. Then Transportation Department officials indicated there could be room for Mergers and Acquisitions (M&A) within the sector.
That was followed by Delta Air Lines CEO Ed Bastian recalling that its 2008 merger with Northwest Airlines and other airline tie-ups that occurred during that time period were driven by higher fuels.
The current high fuel environment creates the backdrop for structural change in the industry.
But given the uncertain world those operators find themselves in, is there really an appetite for full-blown acquisitions?
United sent a a few shockwaves through the industry after reports surfaced that its CEO Scott Kirby had proposed a merger with American Airlines to the Administration of President Trump, who apparently likes 'big deals'.
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