Monday his airline’s interest in consolidation and noted the relative stability of the industry as a result of airline mergers.
Kirby made his comments during a discussion at the Boyd Group International Aviation Forecast Summit, taking place at the Intercontinental Dallas. The summit attracted up to 500 officials from the airline and airport industry.
Kirby was careful not to speak specifically about American Airlines. Tempe, Ariz.-based U.S. Airways and Fort Worth-based American have signed a non-disclosure agreement to evaluate a possible merger.
“We have been pretty on-the-record and still continue to believe that we are in an industry that consolidation makes sense for, and there’s probably one big consolidation left,” Kirby said. “Getting to a consolidated world is a path that this industry has been on certainly since 9/11 and a path that’s I think nearing completion.”
In response to a question from moderator Mike Boyd, chairman of Boyd Group International, Kirby said he doesn’t think the airline industry will look much different than it does today.
“Any time in the past 30 years, you could’ve answered quickly, saying, ‘A lot different than it does today.’” Kirby said. “I think in 10 years it will look remarkably like it does today, which is a testament to all that’s happened with deregulation and a testament to a world where I think we’re finally on the brink of stability, at least stability for the airline industry relative to what it’s been historically.”
Kirby said 2011 was a good example of industry stability. Fuel prices spiked and the world economy suffered, but there wasn’t dramatic change across the industry. “It was really the first time since deregulation that you had exogenous events — fuel spike, economic recession — happen and you didn’t have airlines at the brink of bankruptcy, by in large,” he said.
Kirby also added: “Part of the reason I think the industry 10 years from now won’t look dramatically different than it does today is because (the consolidation) path has almost run to an end.”
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