Thread: WN buying AS?
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Old 10-16-2019 | 06:04 PM
  #19  
Baradium
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From: 737 FO
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Originally Posted by rickair7777
DOT has little to do with it, it's DOJ and FTC.

As to the political practicality of an airline merger...

1. Would it result in a merged entity significantly larger than DL or AA (this is a bit nebulous depending on whether you look at revenue or ASMs or even fleet count)?

2. Would it result in a significant monopoly at any big hub or regional market?

If the answer is no, it would likely pass muster with the current administration. #2 could be (and has been) addressed by divesting gates/slots to balance out competition.

Whether it makes business sense is of course a whole 'nother issue. But corporate leaders in general will assume that two smaller companies in the same business can generally achieve cost savings and efficiencies by merging.

I think AS could be acquired by SW, or merge with anyone smaller. I think they could be acquired by UA with west-coast divestitures (not saying that makes sense). Could maybe be acquired by DL, the merged entity would be bigger than AA but not that much bigger.
As much as I would like to see DL buy Alaska, I honestly think the expansion DL has made in Seattle would make approval very difficult to achieve.
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