What would a US Air-American merger mean for you?
If US Airways and American Airlines merge, what will that mean for you? It probably won't surprise you to hear that it would likely lead to higher ticket prices.
Peter Greenbrerg has some interesting, but not unexpected comments on the future of airline fares, routes, and reward seat availabillity.....
"First, you can't see something like this happening for 18 months. There will be antitrust review before American could even leave bankruptcy. That said, [US Airways CEO] Doug Parker has been meeting with American's creditors, and, according to sources I've spoken to, promising to make them whole. If the majority of those creditors are on board, he's in a good position to pull this off.
And of course ticket prices will rise....
Anytime you shrink capacity and jettison certain routes, airfares have nowhere to go but up. They're already climbing: The cost of a flight to Europe is up 22 percent over last year.
There would be a merging of frequent-flier programs and a diminishing availability of reward seats. There's no point in giving away seats in a frequent-flier program if there are only three airlines. But the programs will stick around -- these companies actually make more money from frequent-flier programs than they make from being airlines. But instead of getting a free ticket, you'll get a toaster."
What would a US Air-American merger mean for you? - CBS News