Merger Matchup Series announced and available for pre-order

Cambridge Aviation Research is pleased to announce this upcoming report series.

The perceived success of the Delta-Northwest merger has airline executives again eyeing consolidation as a response to the current environment of economic uncertainty, slashed capacity, lowered yields, and renewed security concerns.

Our 2010 Merger Matchup report series will analyze each likely pairing of major U.S. carriers, scoring each potential match by geographic & fleet compatibility, financial health, and potential cost savings. Any overlap markets with antitrust concerns are flagged by comparing pre- and post-merger Herfindahl-Hirschman indices (HHIs) to the market concentration thresholds published by the U.S. Department of Justice and the Federal Trade Commission in 1992’s Horizontal Merger Guidelines.

We explore these critical issues for each potential merger:

• Geographic and network compatibility. Which airports are likely to lose out as the combined carriers rationalize their networks?
• Fleet harmony. How do the fleets compare from operational, efficiency, and training perspectives?
• Antitrust concerns. Which markets and routes should planners prepare to sacrifice capacity to stave off regulators?

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