Continental Airlines May Consider Merger
07 December 2006 6:15pm
Continental Airlines, concerned about being dwarfed by larger competitors, would consider a merger if necessary to maintain its competitiveness, its chief executive said.US Airways last week made an $8 billion bid for larger, bankrupt rival Delta Air Lines. Analysts expect the offer to spark counter-bids or other combinations. The statement positions Continental, the number-four American carrier, as another potential player in industry deal-making, alongside United Airlines parent UAL.Low-cost carrier Southwest Airlines has expressed interest in picking up assets that might have to be unloaded following a deal. But unlike UAL, which has long been a proponent of consolidation, Continental would be a reluctant participant, concerned about the implications of staying on the sidelines.
