IAGblog Podcasts

Today there were strong rumors about US Airways and United Airlines doing merger talk. Discussing the news is Professor Aaron Gellman, who is the Transportation Center at Northwestern University and George Hamlin, MD of ACA Associates.

As we discussed this idea, we could not come up with any compelling reasons that the deal makes sense. US Airways is still dealing with two pilot groups and essentially operating as two airlines within one. That scene is one to avoid like a thunderhead. United on the other hand is a mess; its losing buckets of money (an American Alitalia?) What does United's stellar managers have to offer this combined company?

It seems clear that the merger talk is emotionally driven now; there is a fear of being left out. But only the weak airlines have this fear. American, Southwest and Continental are above the fray and are likely to be the best US airlines to fly because of the minimal indigestion they will be suffering as time goes on. No wonder BA is rumored to be quietly talking with American and Continental. Its funny how the US' strongest airlines are in Texas.

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