Competition experts question US airline merger
Concerns over a merger between US Airways and American Airlines have been raised by competition experts in the States.
The American Antitrust Institute and the Business Travel Coalition have produced a White Paper saying a merger between the fourth and fifth largest airlines could create regional strongholds.
It also mentions the enhanced buying power effect it would have on the "Oneworld alliance to which it would likely belong".
IAG chief executive Willie Walsh came out in support of the merger this week as it woud be likely to protect the lucrative joint venture British Airways and American Airlines share over the Atlantic through the Oneworld alliance, see previous story.
"A US Airways-American combination poses potential concerns for competition and consumers," said the report’s co-author, Diana Moss, Vice President of the AAI.
AAI and BTC provide nine major policy recommendations regarding the merger and the White Paper has been sent to the U.S. Department of Justice.
Diane
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