Despite allowing Delta to buy Northwest, United to buy Continental, and Southwest to buy AirTran, the Department of Justice has come down hard against the US Airways-American merger. Years ago the industry was hemorrhaging money and it was in everyone’s interest to have a stable and profitable airline industry. Now that it is, reduced competition will only bring higher prices and fewer routes. A compromise deal may yet be struck.
Tag Archives: Airline mergers
Ticket to Ride
Despite having 26% of the US Market, the American Airlines-US Airways merger will proceed. That said, it will mean higher fares between smaller cities, reduced service on unprofitable routes and possibly fewer hubs. The key to minimizing harm to consumers is eliminating overwhelming airline dominance at airports. Hello passengers in Cincinnati, Charlotte, Dallas, Miami, Minneapolis and Philadelphia. Ideally, AA, Delta, United and Southwest should compete head-to-head as much as possible.