What if you could make the call on the proposed merger between American and US Airways?
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merger
While touting only 12 conflicting non-stop flights, AA/USAir actually overlap on connecting-flight routes between more than 760 markets
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I am a US Airways Dividend Miles member and I love it. But the good days will be coming to an end. The merger with American Airlines (AA) is going to ruin my frequent flier life. I will lose mileage-earning non-stops to Europe from my home town, Washington, DC, and upgrades will be flushed down the AAdvantage toilet.
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As a bankruptcy solution the merger of American Airlines with US Airways is a wonderful solution. Creditors are made whole, stockholders do not lose all of the value of their stocks (though it has been dramatically reduced) and the business of aviation can continue. However, there is the messy business about how this merger will affect consumers.
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Literally, hundreds of thousands of newspaper readers are frequent fliers and business travelers whose current airline transportation world this merger proposes to upended. The effects on consumers should be the media’s focus, not the romance of the deal.
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This is a merger that, even the airlines involved, don’t claim provides a net benefit to passengers. However, it clearly reduces competition and it focuses on financial stakeholders. Here’s a rundown on the merger benefits claimed by AA and US.
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There are no discernible consumer benefits from this merger. No new routes, no new competition, no savings that can be passed on to consumers. Even if there were significant savings created by synergies in this merger, they would be overwhelmed by the negative consequences of higher airfares and reduced competition.
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787 batteries replaced multiple times, Tom Horton may be chairman of merged airline, Europe says no to TNT/UPS merger
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US/AA deal could come soon, Boeing 787 may be grounded until 2014 if battery solution not found, Air France to launch regional airline called Hop!
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The long-rumored merger between American Airlines and US Airways appeared to move a step closer early this month when Tom Horton, American’s chief executive, announced that the two carriers were in “discussions” and that a decision would be made “within a matter of weeks.”
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