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US Airways & AA Merger

Texas
posts: 3,408
reviews: 80
US Airways & AA Merger

Do you think the US Airways and American Airlines merger will effect prices either negatively or positively?

24 replies to this topic
Romford, United...
posts: 2,065
reviews: 23
1. Re: US Airways & AA Merger

Think fares will head north on long haul flights as one less competitor-how much? who knows!

Liverpool, UK
posts: 9,571
reviews: 14
2. Re: US Airways & AA Merger

Personally I don't think it's that simple as I would not be surprised to see some fares decrease whilst others will increase - there will be those who will simply assume that any increase is due to the merger when other factors will contribute.

London
posts: 1,303
reviews: 73
3. Re: US Airways & AA Merger

Impossible to tell.

They won't necessarily go up.

Chicago, Illinois
posts: 5,620
reviews: 75
4. Re: US Airways & AA Merger

With one less competitor, the merger certainly won't make them go down.

London
posts: 1,303
reviews: 73
5. Re: US Airways & AA Merger

Can you be certain about that?

There are so many factors at play that it is completely impossible to isolate the effect of any of them.

Isn't it possible that efficiency savings realised by combining two major airlines may result in a reduction in fares? (I'm not saying it will, just that it's possible!)

Chicago, Illinois
posts: 5,620
reviews: 75
6. Re: US Airways & AA Merger

Yes, I'm certain. Pricing is marjet based. less competition equals higher prices. At best you won't notice the impact. They certainly will not go down because of the merger.

London
posts: 1,303
reviews: 73
7. Re: US Airways & AA Merger

Not necessarily.

What if there is a huge drop in demand for a particular route?

Boston
Destination Expert
for Boston
posts: 15,801
reviews: 54
8. Re: US Airways & AA Merger

When Continental merged with United their BOS-IAH fares went up and they eliminated some of those non-stop flights,you just never know.

Chicago, Illinois
posts: 5,620
reviews: 75
9. Re: US Airways & AA Merger

Why would an airline merger cause demand to drop? Because if the merger suddenly people won't want to fly between two particular cities?

When they merge, they'll cut routes they both fly, leaving fewer flights with the same demand there was before. At best things will stay the same.

London
posts: 1,303
reviews: 73
10. Re: US Airways & AA Merger

I didn't say that the merger would cause demand to drop. The demand could drop due to some completely unrelated event over the same period.

You would be unable to determine how much of the price rise/fall had been caused by the merger and how much by the drop in demand.

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