Airline mergers seen preparing U.S. carriers for new global travel era

February 20th, 2008 | Category: Consumer Experience

Is the U.S. airline sector on the eve of another transformation? One analyst thinks it may be, whether recent merger rumblings are any indication.

The Delta Air Lines (NYSE: DAL) / Northwest Airline (NYSE: NWA) merger discussions and chatter that Germany’s Lufthansa is considering an investment in a potential merger within United (NASDAQ: UAUA) and Continental (NYSE: CAL) propose to independent equities analyst C. Leonard Bauer that a new commercial aviation paradigm may be up ahead.

“When you look back at the final 30 years, you

can say that the 1980s, clearly, was the decade when mergers were needed to meet the demands of the new market, basically the mass consumer market in the U.S.,” Bauer told BloggingStocks Wednesday. “Those larger carriers’ lowered seat prices led to a huge increase in domestic travel, which helped bring flight travel to the typical citizen.”

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Original post by Joseph Lazzaro

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