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More airline mergers are possible says JetBlue boss

CHICAGO (Reuters) — The prospects for airline consolidation hinge on the ability of US Airways Group to pull off its proposed hostile takeover of bankrupt Delta Air Lines, the chief executive of JetBlue Airways said yesterday.Merger talks between carriers like UAL Corp’s United Airlines and Continental Airlines probably began in earnest only after news of US Airways’ bid for Delta, David Neeleman told Reuters.

A deal between United and Continental is far less likely if US Airways fails to acquire Delta, he said.

“I think that was precipitated by the Delta/US Airways (bid),” said Neeleman, who was in Chicago to mark the launch of JetBlue service to O’Hare International Airport. Neeleman said he had no first-hand knowledge of merger talks.

US Airways announced a takeover bid for Delta in November, sparking speculation that other carriers also would attempt to merge in order to reinforce their competitive positions.

Delta management rejected the offer, but US Airways was appealing to Delta’s creditors for permission to proceed with the takeover.

Last month, sources said United and Continental also were in early merger talks. Neither airline, however, confirmed the discussions.

Neeleman made the comments in Chicago yesterday as JetBlue began a non-stop service to O’Hare airport from New York’s John F. Kennedy International Airport and Los Angeles’ Long Beach airport.