Airline Merger Losers–Passengers, Workers, And Boeing

An industry that goes through a series of mergers usually has several losers, and suppliers are almost always among them. Northwest has merged with Delta DAL and United with Continental DAL. Word came yesterday that Southwest Air LUV would buy AirTran AAI. The markets traded up other regional firms including Alaska Air ALK and JetBlue JBLU. A number of airline analysts believe that American Air AMR, which was once the largest carrier in the US, may need to find M&A targets quickly to bolster its routes. AMR's stock is down 15% this year. The airline mergers hurt three groups badly. The first are airline employees, some of whom are almost always fired in carrier marriages. Otherwise, how would the carriers cut costs? Unions generally fight these layoffs, but ultimately some people lose their jobs. Read the rest here.