Southwest Airlines CEO, Gary Kelly, said his company is still in the market for an acquisition. The company is limiting its search to companies in bankruptcy and wants to maintain a fleet complete with only Boeing 737s. A fleet of one plane keeps maintenance costs and total pilot training low. Southwest lost in its bid for Frontier Airlines in bankruptcy court to Republic Airways last week, Reuters reports. The bid was unsuccessful because of a disagreement of seniority among pilots from the two companies, which Southwest wanted their respective unions to resolve. Helane Becker at investment bank Jesup & Lamont told the Journal’s Deal Blog that with airfares down from the recession “consolidation is inevitable.” Despite Southwest’s moves to open routes in Boston and Milwaukee, analysts worry this strategy is not aggressive enough.
Southwest Airlines Remains on the Prowl
Southwest Airlines is actively seeking to acquire a troubled airline to extend its service.
August 21, 2009