Delta Air Lines CEO predicts airline 'slugfest' WASHINGTON (Reuters) =97 Delta Air Lines chief executive Leo Mullin= predicted=20 on Thursday a "slugfest" between the nation's biggest airlines and their=20 low-cost competitors in the coming years, but not before one or two of his= =20 fiercest rivals possibly disappear. In an Aero Club speech, Mullin said=20 consolidation was one way struggling "hub and spoke" carriers like his=20 could meet their ambitious cost-cutting targets and compete with successful= =20 low-fare, point-to-point competitors, like Southwest Airlines and JetBlue=20 Airways. "The situation that almost certainly would result in much needed=20 hub consolidation and, thus the removal of at least some of the excess=20 capacity which continues to cripple the industry =97 is successful merger or= =20 acquisition activity." Mullin downplayed any interest by No. 3 Delta, considered one of the=20 healthier big domestic airlines, in acquiring a large or small competitor=20 to either dominate the eastern U.S. or expand its reach westward. He also=20 did not speculate on what combination of carriers might make a formidable=20 company. Some experts believe US Airways has positioned itself as a=20 possible merger partner for a bigger airline since emerging from bankruptcy= =20 in March with a sharp focus on its eastern and Caribbean routes and a new=20 emphasis on regional jets. Since a bid by now-bankrupt United Airlines to=20 acquire US Airways failed in 2001 over competition concerns, airlines have= =20 accelerated their participation in marketing alliances that enable them to= =20 sell seats on each others' flights to boost revenue. Delta is code-sharing with Northwest Airlines Corp. and Continental=20 Airlines. United and US Airways have also launched an alliance. Like other= =20 major carriers trying to shake off the industry's worst-ever downturn,=20 Delta is seeking cost cuts of up to $2 billion by 2005. But Mullin said the= =20 industry has hit bottom and traffic is beginning to recover. He said the=20 biggest carriers with their schedule frequencies, service and frequent=20 flier perks will be able to afford to charge a 15% premium for business=20 customers and still compete with low-cost carriers if they can get costs in= =20 line. "At this point, which I think will be around 2006, a real competitive= =20 slugfest will occur between the hub-and-spoke airlines and the=20 point-to-point carriers, which should be very much in the public interest,"= =20 Mullin said. *************************************************** The owner of Roger's Trinbago Site/TnTisland.com Roj (Roger James) escape email mailto:ejames@xxxxxxxxx Trinbago site: www.tntisland.com Carib Brass Ctn site www.tntisland.com/caribbeanbrassconnection/ Steel Expressions www.mts.net/~ejames/se/ Mas Site: www.tntisland.com/tntrecords/mas2003/ Site of the Week: http://www.carib-link.net/naparima/naps.html TnT Webdirectory: http://search.co.tt *********************************************************