Could a merger between Delta and Northwest Airlines spur a joining up of United and Continental? Reuters New Service, in a dispatch from New York, cited sources close to the action as making such a prediction. The report added that industry analysts believe "mergers are needed to help stabilize the volatile industry, which finally emerged from a five-year slump in 2006 after racking up $35 billion in losses." Consumers may not welcome the news, as combinations might also lead to higher fares in markets where flights are scaled back. And the Justice Department could prevent mergers that adversely affect competition, further complicating the deal making.
Gates, slots eyed after mergers
AirTran Airways' chief executive said that he supports airline industry consolidation because it could free up gates at busy airports. If large carriers merge, regulators likely would require that the combined company divest both gates and traffic slots, said Bob Fornaro, president and CEO of AirTran Holdings Inc. Fornaro also said increased congestion and delays could be blamed on "many carriers' preference for using smaller planes to operate more flights," the Associated Press reported.
Opening Pacific skies
Australia and the United States have agreed to drop limits on air service between the two countries, reported the Associated Press from Sydney.
Career-related news is updated weekly on AOPA Online.
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