Mergers in the US airline industry will be no less compelling for the next presidential administration, Republican or Democrat, according to the chief executive of United Airlines, who believes the case for consolidation is "inarguable".
Glenn Tilton told an audience at the carrier's annual analysts day that airline combinations are necessary "in order for the industry to be as healthy and competitive in the US as it should be relative to network carriers around the globe, who as everybody in this room knows, are already advancing on the proposition of consolidation."
In an open skies environment, Tilton noted, consolidation is "a reality of our time".
Echoing similar statements recently made by US Airways chief executive Doug Parker, Tilton believes that the party affiliation of the next administration will have no bearing on the arguments for consolidation: "Frankly I think if two willing companies come together and present the case in a compelling way, it can be made this year or next year."
Yet Parker also stressed that if the goal was to push a merger through the current administration, a proposed deal should be announced before the end of this month.
Some potential merger partners appear to have heeded Parker's call. The Wall Street Journal reported that talks between Delta Air Lines and Northwest Airlines are advancing, and a deal could be announced this week.
Tilton, who pointed out that United has been advocating consolidation in the US airline industry for three years, made no specific comment about his carrier's plans regarding a merger.
Source: Flight International
