Merger could bring anything

FROM THE CINCINNATI ENQUIRER

During the Bush administration, the Department of Justice has had a mixed record on its attitudes toward airline mergers.

Before merging with America West, US Airways applied to merge with United in 2001, only to learn that the move would face a regulatory challenge. The two airlines then withdrew their petition before it officially was rejected.

No official reasons were given by Justice for its decision, but speculation was the airlines' overlap at strategic airports - such as LaGuardia in New York, Washington National, and London's Heathrow - created anti-competitive concerns.

Yet the same set of regulators did approve the US Airways-America West merger two years later.

Prior to deregulation more than 29 years ago, the Civil Aeronautics Board had to approve such moves. And again, mergers were primarily larger carriers buying smaller, regional carriers - especially since only seven so-called "legacy carriers" could operate flights that crossed more than two states.

"Since then, it's been like reading tea leaves," said Northeastern University finance professor Harlan Platt, a long-time airline industry observer. "I would imagine that whatever happens with Delta and the others, there will be some forced divestiture of assets."