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Friday, January 18, 2008

Three Regionals at Risk in Merger Talks

Pinnacle, SkyWest and Comair may be at grave risk in any Delta/Northwest or Delta/United merger. Should the Northwest merger take place the likelihood that Cincinnati and Memphis will be “de-hubbed” is very strong. Salt Lake City could also fall victim.
Delta hopes to reach an agreement to merge with either Northwest or United within the next two weeks but industry insiders suggest that the United angle is a smokescreen to make the combination with Northwest look better.
However, the Memphis Commercial Appeal reported that a DL/NW combination could be a done deal given the fact that Northwest hired a merger consultant before it emerged from bankruptcy last May. The newspaper said that insiders believe that major issues have already been resolved. For a complete analysis see the next issue of Regional Aviation News.

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