Today Dow Jones Newswires reported Glenn Tilton, UAL Corp.'s chairman, president and chief executive said Wednesday the merger of rival European airlines Air France (AF) and KLM Royal Dutch Airlines (KLM) will be beneficial for the beleaguered industry. “I think it's a good thing," Tilton said. "It's the beginning of constructive consolidation in the industry.â€
On October 28 Dave Siegel said in a prepared speech, “Again, I don't have all the answers, but I do sense that increased cooperation, coordination, and potentially consolidation between and among network airlines must be another source of strength through enhanced efficiencies, in both marketing and operations.â€
On October 31 Jeffrey Stanley, manager of economic analysis and regulatory affairs at United said in a prepared speech, “If things stay the way the are now, there will be several Chapter 7 (bankruptcy liquidations) down the road, and that's not good for anyone. The most feasible solution to the situation is consolidation in the domestic airline industry,†he said.
Chip comments: After studying Dave Siegel’s communication style for nearly two years, I believe the man sets up his future actions with hints or comments in emails, the jump seat, in the airport, or in the press. Could RSA become United’s equity investor to provide additional exit financing and then the retirement fund form an airline holding company? Could the holding company then have two-airline unit’s that would be incrementally integrated and then when economics permit be fully merged?
With a former US Airways senior executive telling our crew last Monday that members of the US Airways board met with senior United executives last week, could the business partners be working on a business relationship similar in scope to AF-KLM?
Furthermore, could Virgin USA be entering the mix as well? See the following article:
Philladelphia development officials seek to lure Virgin USA HQ to city
In my opinion, US Airways needs to stabilize its finances, United needs to prove it can emerge, and then the business partners will likely be involved in some sort of corporate transaction.
