Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

Bloomberg Customers

Businessweek Archives

The Skies Are Abuzz, Again

In Business This Week


There's never a dull moment in the airline business. Despite the airlines' best efforts to nudge prices up, sluggish demand for the fall season has triggered another fare war. Trying to avoid even steeper cuts, Delta Air Lines was set to announce on July 30 that it will slash advance-purchase fares by 30% until Dec. 14.

And dealmania is again sweeping the industry. With the ink hardly dry on British Airways' proposal to invest $750 million for a 44% stake in USAir, rumors are flying that BA and USAir will soon offer up to $500 million for Trans World Airlines, which is operating under Chapter 11 protection. That could spark a bidding war in bankruptcy court. And industry insiders are buzzing about the possibility that Air Canada, with financial backing from the Fort Worth-based Bass Brothers, will try to acquire Continental Airlines. Houston entrepreneur Charles Hurwitz has already offered $350 million for the ailing carrier, but only $25 million of the purchase price is equity.

Air Canada also entered merger talks with the country's other major carrier, Canadian Airlines International, after American Airlines dropped plans to buy a stake in that airline. But many believe an all-Canada combination would do little to strengthen the carriers for increasingly crucial international competition, and Canadian's stock fell sharply on concern over its finances.EDITED BY HARRIS COLLINGWOOD

blog comments powered by Disqus