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Continental keeps wary eye on merger bids

US Airways' offer to take over Delta may ignite industry shake-up

The next few weeks could be critical ones for Continental Airlines and the U.S. airline industry.

Merger speculation is in the air in the wake of US Airways' hostile bid last week to take over bankrupt Delta Air Lines. Experts said that move could trigger more mergers.

Executives at Continental are watching intently to see how other carriers play their hands.

They are likely to keep their cards close to the vest until mid-December, when Delta said it will file its plan to emerge from bankruptcy.

Larry Kellner, chairman and chief executive of Continental, said over the weekend that Continental also wants to remain independent

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Continental keeps wary eye on merger bids

US Airways' offer to take over Delta may ignite industry shake-up

The next few weeks could be critical ones for Continental Airlines and the U.S. airline industry.

Merger speculation is in the air in the wake of US Airways' hostile bid last week to take over bankrupt Delta Air Lines. Experts said that move could trigger more mergers.

Executives at Continental are watching intently to see how other carriers play their hands.

They are likely to keep their cards close to the vest until mid-December, when Delta said it will file its plan to emerge from bankruptcy.

Larry Kellner, chairman and chief executive of Continental, said over the weekend that Continental also wants to remain independent

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I don't think any of this will happen, at least not with US Airways acquiring Delta. Doug Parker is obviously out of touch with reality on this deal, especially since the "new" US Airways is still such a mess and still operating as two completely separate companies at this point. At least with the US Airways/America West merger it sort of made sense, as one was strong only in the West, the other strong only in the East, and both were pretty crappy all around. The two also had pretty similar fleets. But with Delta, there's a ton of route overlap all over the nation, almost no fleet commonality, and even though Delta is a shadow of its former self, the company has done a great job in the last year of turning around its image, improving service, and positioning itself to be a profitable, full-service airline. Being bought out by US Airways would ruin all of that, and just make problems at US Airways worse than they already are now.

Doug Parker needs to focus on fixing the many things that are wrong with his company now, not trying to grow through hostile takeovers.

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