US Airways this morning officially withdrew its offer for Delta Air Lines after a last-ditch effort to persuade its creditors to say “yes” by sweetening its offer by an extra billion. The pundits had long predicted this merger would go down in flames, but there is no doubt that US Airways will remain on the prowl for its next vict … er, I mean, acquisition target.
So … who is next?
I’m no airline analyst, but it seems to me that anything that isn’t bolted down is fair game to the US Airways management team. Growth through acquisition is a strategy that will probably serve it well in an industry where consolidation is a happenin’ buzzword.
But enough with the business mumbo-jumbo. The bottom line for customers is that we shouldn’t be breathing a sigh of relief. Nor should Delta employees be high-fiving each other right now. Consolidation is completely inevitable, and one way or the other, these airlines will merge. When they do, our fares will take off.
There will be calls for “re-regulation” but they won’t go anywhere, and before long, the major airlines will be comfortably ensconced in their fortress hubs, printing money in the basement.
Oh well, that’s life.
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While I agree that consolidation in the airline industry is both likely and overdue, a Useless Airways takeover of ANYBODY would be a great disservice to customers of the acquired airline.