No Tailwind for Airlines
With the possibility of congressional opposition to airline mergers, and the carriers continuing to face rising costs, the prospects for relief in the industry are unclear. James Oberstar, D-Minnesota, Chairman of the Transportation and Infrastructure Committee, said in a CNN Money report of the possible mergers, “Hell, no.” He will carry his aggressive anti-merger fight to the Justice and Transportation Depts., pressuring them to deny approval of proposed airline mergers. Delta (NYSE: DAL) is in early talks with United (NASDAQ: UAUA) and Northwest (NYSE: NWA). If a merger takes place there, speculation is that Continental (NYSE: CAL) will need to…