More space for mergers in the aviation industry

More space for mergers in the aviation industryWith the Delta Northwest merger finally reaching completion, Aviation analysts are of the view that more such mergers are inevitable in the global aviation industry. Market experts are supporting the fact that the sky is nothing but crowded with too many players operating in the industry which makes the chances of another merger all the more bright.

However, the industry watchers do not expect it to happen too soon in the marketplace as the ongoing recession is dampening the corporate appetite for risk. In fact, the experts are of a view that the industry is still getting used to the Delta-Northwest consolidation.

The merger between the two airlines was financially finalized last year; but it was only in January this year that Northwest Airlines renamed all its flights under the Delta brand. The reports further added that if the recessionary effects deepen on the industry; it may lose a carrier in a hard way.

The International Air Transport Association has forecasted an industry-wide global loss of $5.6 billion in 2010, recovering the mind-boggling loss of $11 billion that the industry suffered in a year ago period.