Warren Buffet may buy an airline, says Morgan Stanley

Southwest Airlines could be a plausible candidate for a takeover

Warren Buffett’s decision to take stakes in the four largest US airlines could be a first step to eventually taking over one of the companies, analysts said, citing his history in the railroad industry.

“We view a full-scale acquisition of an airline by Berkshire as a possibility and not worth dismissing, particularly if the stocks weaken,” Morgan Stanley analysts led by Rajeev Lalwani said in a note to clients Wednesday.

Buffett’s Berkshire Hathaway Inc jumped into airline stocks in the second half of 2016, becoming one of the top two investors in Delta Air Lines Inc, United Continental Holdings Inc.,