After much speculation that the West Coast Alaska Airlines may be seeking a merger partner, CEO Bill Ayer has cleared up any confusion by claiming that the carrier will remain independent.
"The history of mergers in this industry is not a good one," Ayer told the Seattle Times. "There have been rumors about somebody buying Alaska Airlines as long as I've been here, and probably longer than that."
What Ayer means when he says that the history of mergers has been tainted is that more often than not the partnerships are born out of desperation. Carriers realize that they absolutely need to partner up or face extinction. In the wake of the economic downturn, it appears nearly every major airline is feeling that pressure. United and Continental has merged, Delta partnered up with Northwest, and Southwest bought out AirTran in the latest round of mergers.
Many thought that Alaska would be a good target for U.S. Airways, a carrier that has made it clear it is looking for a partner. However, Ayer isn't willing to deal. Alaska turned a profit during the first three months of the year, when many airlines lost money because of rising fuel costs. The small carrier dominates much of the Pacific Northwest, with multiple flights to Alaska and a home base at Seattle.
For business travelers that typically fly smaller regional airlines, a merger usually works out favorably. Bigger companies with larger route networks will typically incorporate any frequent flier miles earned on the smaller carrier into their program, making your accrued miles more valuable.