TheStreet.com- Since the airline industry cumulatively has failed to make money since the Wright Brothers first flew, it might seem reasonable to let the hedge funds takeover.
But it’s hard to imagine there is any real likelihood for successfully executing the scheme, floated last week by hedge fund Pardus Capital Management, to merge Delta and UAL’s United Airlines.
And it’s important to remember that hedge funds’ attention spans are brief, often extending only to the interval necessary to generate short-term boosts in the price of their holdings.
Pardus stirred things up in the airline industry, releasing a letter last week that urged a merger between Delta and United. In the letter, Pardus said it had commissioned a study that endorsed the merger, had met with the airlines, laid out a formula for share distributions and selected a management team.
