WMFD TV

Search Archive WMFD.com News

www.wmfd.com - A merger between American Airlines and U.S. Airways has created the world's largest airline, and now that the Department of Justice has given them the greenlight, the deal is cleared for take-off, as Rene Marsh has the details. }}" />

   
 
 
Consumer Impact On Airlines Merger

Story By: Larry Stine

 

 

 
 
 
  Email Story to Friend
   
  Original Published: 11/16/2013 A merger between American Airlines and U.S. Airways has created the world's largest airline. And now that the Department of Justice has given them the greenlight, the deal is cleared for take-off. Rene Marsh has the details. Less than a decade ago, nine major airlines criss-crossed the skies. But the industry has gone throhgh merger, after merger, after merger. And with this new deal, only four major airlines would remain. "Let's be very honest,"says Seth Kaplan of Airline Weekly. "Airlines, or companies in any industry, don't merge for consumer benefit. They merge to help themselves, but that doesn't mean it has to be bad for consumers." Kaplan says prices could go up on routes like Dallas to Charlotee where American and U.S. Airways went head-to-head, since that competition would disappear. But he says fares could drop at seven major airports wheee, under the Justice Department agreement, the two airlines will have to sell their take-off and landing slots to low-cost carriers. Consumer advocate Charlie Leocha, who opposed the merger, says he can live with this deal. "I think it's a win for the low-cost carriers," says Leocha. "All of a sudden they now have access to all of the major markets that they couldn't get before." Leocha says transition is always bumpy. "For example, you make reservation on a U.S. Air flight on the U.S. Air system and you're flying on an American Airline and your connecting sometimes the computers don't talk to each other very well," he says. Both experts say your frequent flier miles are safe, but with one less major airline, loyalty programs could require more miles for a flight. "These mergers are very much a trade-off," says Kaplan. "Consumers are paying more to fly, but on the other hand, they get an industry that is not only safer than ever, but also more reliable, flights that are on time and not cancelled as much." Completion of the merger is still subject to the approval of the settlements by the U.S. bankruptcy court, and certain other conditions. The companies now expect to complete the merger in December.
   
  MORE RECENT NEWS
 
Image1 The Central Hotel Apartments for senior citizens in Galion was partially evacuated Thursday due to concerns about the structural integrity of floor joists. Full Story
Image1 Mansfield Christian School's annual Flamin' Hot Breakfast happens Saturday morning from eight to eleven in the new Early Childhood Wing at the school at 500 Logan Road. Full Story
 
Image1 New dads are invited to the Daddy Boot Camp Saturday from nine to noon at the Mansfield Y. Full Story
Image1 The second annual Economic of Excellence Awards will be held Tuesday, March 24, at the Holiday Inn in Mansfield. Full Story
  MORE NEWS
 

Economic awards honors area businesses

Armed Robbery Suspect Arrest In Lucas Hold-Up

BORN Center Opens In Bucyrus

Entries being accepted for Kick Butts with Art show

Samaritan and University Hospitals working on integration

4-H Pancake Supper set for March 10

Babysitter charged with murder of infant

1.5 Million Raised for United Way of Richland County

Police looking for man who robbed Crestline Dollar General

Be Prepared For Severe Spring Weather

Cosby Educational Heritage Center founder passes

More News