US Airways made a hostile $8 billion bid for Delta Air Lines on Wednesday, ignoring Delta's repeated statements that it isn't interested in a merger. The move could start a stampede of competing bids in a long-predicted industry consolidation.
Analysts said United Airlines' parent company may make its own move to acquire Delta, and takeover bids for Northwest Airlines, which like Delta is being reorganized in bankruptcy court, can't be ruled out.
They also questioned whether US Airways could complete its plan to create the nation's largest carrier, even after a planned 10 percent cut in capacity, on the compacted timeline it is seeking.
"My main question mark is if the politicians and regulators would allow it to happen, because if it did it would probably set off a trend for industry consolidation," Ray Neidl, an airline analyst with Calyon Securities in New York, said of a Delta-US Airways combination.
It also could lead to higher ticket prices for passengers, industry experts said. "With a capacity reduction of 10 percent, fares are going nowhere but up," said Robert W. Mann, a Port Washington, N.Y.-based airline consultant.
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