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Talk of airline consolidation quiets down

1 February 2007

US Airways Group Inc.’s decision Wednesday to drop its hostile bid for Delta Air Lines Inc. has damped speculation that a wave of consolidation is about to sweep the industry.

Airline deals may still be in the offing this year, analysts said. But the failure of US Airway’s high-profile effort sends a strong signal that the number of big domestic carriers is unlikely to shrink in the near future.

“‘I would say it’s now much less likely that we’ll see significant consolidation in 2007,'” said Jim Corridore, airline analyst for Standard & Poor’s in New York. “‘I had thought it was imminent. Now, I think it’s still possible but not really in the cards.'”

source: Los Angeles Times

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