Why An Alaska & American Merger Makes Sense, But Probably Won't Happen

Alaska is a well run conservatively managed airline that has never gone bankrupt. Sort of like Southwest.

American is a poorly run airline that has gone bankrupt multiple times and borrowed money to buy back stock. They run their balance sheet like the federal government.

If these carriers were to merge, it would need to be Alaska buying American out of bankruptcy and dumping their entire management team. However, Southwest would be a far better merger partner for Alaska.

If businesses were operated for consumer approval, it would be a different world. One full of bankruptcies. Businesses need profit to appease stockholders, some of which are you through your retirement accounts.

This merger is happening and will happen. Math is math.