Airline Mergers

US Airways is bidding to takeover Delta Airlines. The airline industry has needed some sort of consolidation for years (some more classical economists have suggested that the Government simply stop offering bailouts).

Such a merger would probably mean marginally higher ticket prices for consumers, but it would also be good for the industry. I don't think the courts would have any problem with the merger, but Delta Airlines' management seems dead set against it.

Posted by Peter