Southwest-AirTran merger begins
Will air travelers be affected by the merger yesterday of Southwest and AirTran? No, according to the Justice Department which approved the arrangement last week.
It marked the third merger of big US airlines in three years.
“The merger is not likely to substantially lessen competition,” said the Justice Department. But at the same time it might be beneficial to consumers.
The department also said that when the two airlines entered new markets to compete with legacy airlines, there were positive developments for travelers: ticket prices tended to drop.
Others predict that may be the case in the short run but that fares will rise as industry competition is lessened.
“And some highly sought business travelers, accustomed to the reserved seating and business-class section offered by AirTran, may balk at Southwest’s open-seating policy and single-class cabins,” suggests the Dayton Business Journal.
Southwest is already flying more domestic passengers than any other US airline. With the merger, it will add another 100 cities.
"Nothing changes. Our customers will continue to book flights at AirTran.com, fly on AirTran jets staffed by AirTran employees, and our policies will remain in place as we begin to integrate," said “AirTran spokesman Christopher White.
Full integration will likely take a year to 18 months, analysts say.
By David Wilkening
David
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