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American Airlines/US Airways

Romford, United...
posts: 2,065
reviews: 23
American Airlines/US Airways

If the rumours are to be believed these two majors are about to merge into one massive airline based at Fort Worth which will lead to less competition,less choice and ultimately higher seat prices on the vast majority of routes-grab those cheap deals while you can!!!

Liverpool, UK
posts: 9,658
reviews: 14
1. Re: American Airlines/US Airways

Any merger (if it proceeds at all) will be several months if not years away - not only will the companies have to agree a deal but it will be subject to regulatory approval.

I think that suggesting a merger will simply lead to higher prices is flawed - mergers can reduce operating costs resulting in reduced prices.

Romford, United...
posts: 2,065
reviews: 23
2. Re: American Airlines/US Airways

TomC97-not according to the Wall St Journal?

Leeds, United...
Destination Expert
for Leeds
posts: 7,231
reviews: 115
3. Re: American Airlines/US Airways

It would have been helpful to add a link to this story - I'll do it for you.

Just a couple of quotes from article which is opposite what you claim in the OP. Also, it isn't going to happen overnight if it does as Tom has already said.

" But other analysts say that because American and US Airways overlap on just 12 routes—nearly all between their hubs—the merger wouldn't significantly increase fares."

"Jonathan Kletzel, head of the transportation practice at accounting and consulting firm PricewaterhouseCoopers LLP, said mergers don't necessarily lead to an increase in fares, and that from 2004 through 2011—a period that includes some of the biggest airline mergers—domestic airfares actually decreased by nearly 1% a year when adjusted for inflation."

"The recent wave of consolidation has meant higher profits and more stability for the industry, which has led airlines to invest in technology, new airplanes and better customer service. "It's not all bad news," said Mr. Seaney of FareCompare. "A healthy airline industry means a better flying experience overall.""

…wsj.com/article/…

Romford, United...
posts: 2,065
reviews: 23
4. Re: American Airlines/US Airways

Sunmagic-sorry was looking at WSJ article Feb 6 which paints a slightly gloomier picture than the article Feb 7-they must've upgraded their view on the proposed merger

San Diego
Destination Expert
for San Diego
posts: 42,695
reviews: 59
5. Re: American Airlines/US Airways

These 2 companies have been in talks about this for months already.

It appears now that the merger will go through sooner rather than later.

American had been offering lots of reduced fares but everyone knew they wouldn't last forever. We can't all run out and buy tickets now based on worrying that fares in the future will rise.

Geneva, Switzerland
Destination Expert
for Geneva, Liechtenstein, Air Travel
posts: 3,328
reviews: 270
6. Re: American Airlines/US Airways

Besides it would be a rebalancing of the 3 big alliances in the US as US+AA will will carry more or less the same number of passengers than Delta (based on the 2011 numbers) and slightly more than Conti.

Seahouses, United...
posts: 1,360
reviews: 1
7. Re: American Airlines/US Airways

The reports on American TV state that the merger could be done as soon as next week creating the biggest airline in the world. When this happens prices will go up . If you look it will also affect British travellers as the two airlines run many of the internal flights from 'hub' airports.

Seattle, Washington
Destination Expert
for Seattle
posts: 3,443
8. Re: American Airlines/US Airways

>> The reports on American TV state that the merger could be done as soon as next week creating the biggest airline in the world. When this happens prices will go up... <<

No, the merger could be ANNOUNCED as soon as next week. "Done" will require a very long time; for example the United-Continental merger took around two years to complete legally, never mind integrating the two airlines' operations, staff, etc. (Arguably they're still not.) Northwest and Delta had a similar story, and US Airways' merger with America West is still incomplete (dueling pilots' unions, for example) years after the fact.

The news media wants the public to think this is some kind of badda-bing process, but it ain't so.

Nashville, TN
posts: 4,389
reviews: 8
9. Re: American Airlines/US Airways

Everything I've seen is that, even though it'll be based in Dallas, it's going to be run by US Air. Time for me to use up my miles and dunp their FF program.

Boston
Destination Expert
for Boston
posts: 15,854
reviews: 54
10. Re: American Airlines/US Airways

First it was American/TWA, Delta/Northwest then United/Continental (i miss that airline) Southwest/Airtran now American/Us Airways which will be the biggest airline in the US probably the world who's next JetBlue/Virgin America we shall see.