GogglesPisano
Pawn, in game of life
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UAL CEO Expects More Consolidation
Thursday September 21, 5:53 pm ET
By Ann Keeton, Dow Jones Newswires
UAL CEO Tilton Expects More Airline Consolidation
CHICAGO (AP) -- There's likely to be more consolidation in the U.S. airline industry, just as there has been in the oil and telecom sectors, the chief executive of UAL Corp. said Thursday.
Following three years of "hard work" with financial restructuring in bankruptcy, UAL, parent of United Airlines, now is on solid footing to participate in the merger and acquisition market, CEO Glenn Tilton told reporters at the Executives' Club of Chicago.
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Tilton, who is also president and chairman of the company, didn't speculate on which airlines might come into play, but said that United would consider ways to enhance value for its shareholders if an opportunity arose.
Down the road, Tilton said, U.S. airlines may become financial partners with airports. Citing Lufthansa AG's investment in the companies that operate airports in Germany, Tilton said that "Europe is ahead of us" in putting ground and air businesses together in the industry.
Since it emerged from bankruptcy in February, United has enjoyed healthy industry trends, including strong air passenger traffic, and recently, lower fuel prices. The price of jet fuel has fallen 20 percent in the past month, boding well for airline earnings.
Tilton, an oil company executive for 30 years prior to joining United three years ago, said oil prices reached unprecedented heights in the past year due to political insecurity rather than the fundamentals of supply and demand.
"If there's one thing I've learned in the oil business, it's that high prices beget low prices," Tilton said. Oil producers have been spurred to action with new plans for oil production from the Gulf of Mexico and Canada. That will add oil supply, and make the U.S. less dependent on foreign sources, Tilton said.
UAL shares closed down 84 cents, or 2.9 percent, to $27.91 Thursday on the Nasdaq Stock Market. The company is based in Elk Grove Village, Ill.
Thursday September 21, 5:53 pm ET
By Ann Keeton, Dow Jones Newswires
UAL CEO Tilton Expects More Airline Consolidation
CHICAGO (AP) -- There's likely to be more consolidation in the U.S. airline industry, just as there has been in the oil and telecom sectors, the chief executive of UAL Corp. said Thursday.
Following three years of "hard work" with financial restructuring in bankruptcy, UAL, parent of United Airlines, now is on solid footing to participate in the merger and acquisition market, CEO Glenn Tilton told reporters at the Executives' Club of Chicago.
ADVERTISEMENT
Tilton, who is also president and chairman of the company, didn't speculate on which airlines might come into play, but said that United would consider ways to enhance value for its shareholders if an opportunity arose.
Down the road, Tilton said, U.S. airlines may become financial partners with airports. Citing Lufthansa AG's investment in the companies that operate airports in Germany, Tilton said that "Europe is ahead of us" in putting ground and air businesses together in the industry.
Since it emerged from bankruptcy in February, United has enjoyed healthy industry trends, including strong air passenger traffic, and recently, lower fuel prices. The price of jet fuel has fallen 20 percent in the past month, boding well for airline earnings.
Tilton, an oil company executive for 30 years prior to joining United three years ago, said oil prices reached unprecedented heights in the past year due to political insecurity rather than the fundamentals of supply and demand.
"If there's one thing I've learned in the oil business, it's that high prices beget low prices," Tilton said. Oil producers have been spurred to action with new plans for oil production from the Gulf of Mexico and Canada. That will add oil supply, and make the U.S. less dependent on foreign sources, Tilton said.
UAL shares closed down 84 cents, or 2.9 percent, to $27.91 Thursday on the Nasdaq Stock Market. The company is based in Elk Grove Village, Ill.
