United Airlines CFO Jake Brace recently said that his airline is still looking for a merger partner. He recently said that there are still airlines that United could merge with, but that it isn't looking to do a hostile take-over. He said that "consolidation is not something that one company can do in isolation. We don't believe that ... hostiles in the airline industry are very successful. Our belief is that you have to do something on a consensual basis." Evidently he was referring to the failed US Airways hostile takeover attempt of Delta.Brace also said what United was looking for in a merger partner:
- an airline with a strong Atlantic network (like Continental or Delta). This is one of United's weaker areas.
- an airline with a southern hub (like Delta) so that it can increase its presence in the Caribbean and Latin America, which is its other main 'weaker area'.
- an airline with a strong northeast presence (like Continental, US Airways, and to a lesser extent, Delta)
Labels: Continental Airlines, Delta Airlines, merger, United Airlines, US Airways
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