Proposed airline merger might leave all flyers up in the air
If the long-standing rumor comes true, and US Air merges or buys AA, what will be the impact on leisure and biz travelers? The verdict is in and it’s not particularly good for either group.
Both the Detroit Free Press and the Wall Street Journal are among sites saying the move will lead to higher prices.
"Bad for customers," concludes the Detroit Free Press.
The Journal says in the long run, a merger might help stabilize the industry, which would help both groups of travelers. But a merger might also shortchange frequent flyer programs on one side or the other.
If US Airways and American merge, that will leave only four major airlines, down from eight just three years ago. Fewer airlines mean less competition. And higher prices.
But the good news is that the merger would make both airlines better situated to provide broader service.
It could also lead to better rewards programs.
AMR, which filed for Chapter 11 bankruptcy protection in November for its American Airlines, has until Sept. 28 to submit its own plan of reorganization to the court.
But any such move is not only a long ways off but could be deterred by many problems such as what to do about the two airlines union employees.
Other challenges would be to combine two very different aircraft fleets and route systems.
Past performances are a help. US Airways and America West Airlines merged in 2005. Nearly all of America West’s employees were junior to US Airways’ workers, news reports show, which made merging airline seniority lists a nightmare.
By David Wilkening
David
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