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Commentary: United + Continental is a big win for all stakeholders
05 May 2010
AirlineForecasts, investment research firm, says mergers provide a market-driven restructuring solution that allows network airlines to compete with the emerging low-cost carrier business model.
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United-Continental merger
AirlineForecasts
Paul Mifsud
Carlos Bonilla
Vaughn Cordle
US airline industry
AirlineForecasts investment research firm released a white paper by Paul Mifsud, Carlos Bonilla and Vaughn Cordle. The three industry experts argue that network airlines that provide access to global markets are in danger of slowly liquidating if they are not allowed to merge.
The U.S. airline industry can only support three large network airlines.
The announcement of a United-Continental Airlines merger renews interest in the legal, financial and political issues surrounding consolidation in the U.S. airline industry. Perspectives on these issues among the many industry stakeholders—consumers, communities, investors, suppliers, labor, competitors and politicians—vary, but it is clear that the corporate and governmental policies applied to these subjects affect not only these stakeholders, but also the national economy and the trillion-dollar travel and tourism industry that relies so heavily on a healthy, reliable air transportation network.
The purpose of this white paper, and those to...
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