Eagle757shark
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CHICAGO, June 13 (Reuters) - UAL Corp. (UAUA.O: Quote, Profile , Research), parent of United Airlines, would like to find a merger partner with a Southern tier hub and a strong presence in the Northeast, the carrier's chief financial officer said on Wednesday.
Speaking at a Merrill Lynch investor conference, Jake Brace said the No. 2 U.S. airline remains interested in consolidation despite a lessening in industry speculation on the subject.
"Consolidation is not something that one company can do in isolation," Brace said on a Webcast of the conference. "Our belief is that you have to do something on a consensual basis."
He noted the failed hostile takeover by US Airways Group (LCC.N: Quote, Profile , Research) for Delta Air Lines (DAL.N: Quote, Profile , Research) and resistance by Midwest Air Group (MEH.A: Quote, Profile , Research) to a hostile bid from AirTran Holdings (AAI.N: Quote, Profile , Research).
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Industry experts generally agree that consolidation may be the best way for airlines to reduce the excess capacity -- number of seats for sale -- that has depressed fares and revenue for several years.
Early this year, however, talk of consolidation died down after Delta rejected the US Airways bid. Some analysts believe airlines will resist mergers until an industry downturn and financial instability make it necessary for survival.
The airline industry has been on the mend following a years-long slump, but a weakening domestic revenue outlook has cast doubt on the prospects for recovery.
UAL shares were down 1 percent at $34.25 on Nasdaq in morning trade.
© Reuters 2007. All Rights Reserved.
Very interesting. If the Midwest thing doesn't shake down, could United come in and make an offer to AirTran?
1. AirTran has a southern hub.
2. AirTran has a strong northeast presence
3. AirTran has new airplanes on order at a great deal
Interesting statement coming from United one day out from the board of directors meeting in MKE for Midwest. Something to keep an eye on. The NPA needs to be looking at all scenarios. Not just if AirTran purchases Midwest. What if AirTran is made an offer? Looking at this statement from United, AirTran could be what they are looking for. Just a thought. Times are about to get interesting!
Speaking at a Merrill Lynch investor conference, Jake Brace said the No. 2 U.S. airline remains interested in consolidation despite a lessening in industry speculation on the subject.
"Consolidation is not something that one company can do in isolation," Brace said on a Webcast of the conference. "Our belief is that you have to do something on a consensual basis."
He noted the failed hostile takeover by US Airways Group (LCC.N: Quote, Profile , Research) for Delta Air Lines (DAL.N: Quote, Profile , Research) and resistance by Midwest Air Group (MEH.A: Quote, Profile , Research) to a hostile bid from AirTran Holdings (AAI.N: Quote, Profile , Research).
Reuters Pictures
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View Slideshow
if(!CMSB_ID){var CMSB_ID=""} CMSB_ID+="061107_MIDART_editorschoice,";document.write('');
Industry experts generally agree that consolidation may be the best way for airlines to reduce the excess capacity -- number of seats for sale -- that has depressed fares and revenue for several years.
Early this year, however, talk of consolidation died down after Delta rejected the US Airways bid. Some analysts believe airlines will resist mergers until an industry downturn and financial instability make it necessary for survival.
The airline industry has been on the mend following a years-long slump, but a weakening domestic revenue outlook has cast doubt on the prospects for recovery.
UAL shares were down 1 percent at $34.25 on Nasdaq in morning trade.
© Reuters 2007. All Rights Reserved.
Very interesting. If the Midwest thing doesn't shake down, could United come in and make an offer to AirTran?
1. AirTran has a southern hub.
2. AirTran has a strong northeast presence
3. AirTran has new airplanes on order at a great deal
Interesting statement coming from United one day out from the board of directors meeting in MKE for Midwest. Something to keep an eye on. The NPA needs to be looking at all scenarios. Not just if AirTran purchases Midwest. What if AirTran is made an offer? Looking at this statement from United, AirTran could be what they are looking for. Just a thought. Times are about to get interesting!
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