Airline mergers hurting competition
The shrinking number of US airlines over the last decade has severely reduced competition and forced up airfares with many airports dominated by just one or two main players, research by the Associated Press says.
Airline mergers has reduced nine large US airlines to the big four – American, United, Delta and Southwest, resulting in a single airline controlling most of the market at 40 out of 100 of the largest airports in the country.
It also says one or two carriers dominate at 93 out of the 100 airports based on seat capacity.
"Airlines aren’t going at each other like they used to," said aviation consultant Mike Boyd.
They have their turf, and they very rarely go to the mattresses with one another."
Over the same 10-year period domestic fares increased 5% percent after adjusting for inflation which does not include the now ubiquitous checked bag fee virtually everyone now pays.
Trade group Airlines for America cites stronger demand as the reason for the higher fares and not simply as a result of airline mergers.
American Airlines’ CEO Doug Parker denied passengers are getting a raw deal.
"We have increased flying out of each of our hubs. We want to expand and that’s good for consumers not bad."
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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