State of the Airlines

Friday, February 11, 2005

NEWS: America West CEO Sees Mergers

America West Airlines CEO Doug Parker sees mergers as the next logical progression in the industry. He's goes as far as saying that what will remain is two or three tradition carriers (i.e. United Airlines, Delta Airlines, Northwest Airlines etc) and two or three low cost carriers (i.e. Southwest Airlines, JetBlue, AirTran and...oh yes...America West). Interesting to note that Mr. Parker lists America West among the low cost carriers. I tend to agree that the industry will see a merger or two. But I also think we will see a liquidations or two.

Either option would help ease the capacity problems that continue to plague the airlines.

His prediction on the number of airlines that will remain standing after the melee is is bold. Two or three airlines in each category doesn't leave much room for the current group of players. He is also not directly saying which side of the equation America West falls on, merger or mergee. But America West did take a shot at ATA before Southwest Airlines stepped in on that action. All of this tells me that America West is shopping...is anyone looking to sell?

UPDATE: Found better information and fixed a mistake regarding America West making a profit last year...I had that wrong.