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Airline Industry May Go Consolidation Crazy As Delta Vows to Fight Merger; Observers See Pros, Cons

The proposed U.S. Airways/Delta Air Lines merger could be the first move in what observers are saying could be an industry-wide consolidation craze. According to a Reuters report, United Airlines Chief Financial Officer Jack Brace yesterday said, "The industrial logic of mergers in the airline industry is so compelling. We believe mergers in the airline industry have significant synergies, and we believe the industry needs to consolidate."

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