American Airline and US Airways Merger Essay

924 Words Sep 29th, 2013 4 Pages
American Airlines and US Airways Merger: Is it Good for Consumers?

Is the new merger between American and US Airways a good thing for consumers or will it lead to higher ticket prices and less chance for people to travel? The latest merger between US Airways and American Airlines now gives people basically just four companies to choose from for their airline travel. Is this fair or is it creating a monopoly?
The $11 billion dollar deal still has to be approved by American Airlines’ bankruptcy court judge and U.S. antitrust regulators. If approved, US Airways and American Airlines will merge and will be headquartered in Fort Worth, Texas. US Airways CEO, Doug Parker, will run the new company that will have nine hubs, 1500
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In contrast, average retail prices in the dame time frame increased 47%” (Spiller). This is good for consumers because “if an airline attempts to gouge its customers on a particular destination, other airlines with reasonably located hubs will have a strong incentive to add such a destination to their networks, frustrating the gouging airline’s ability to raise prices” (Spiller). Consumers will definitely have to spend more time searching for lower fares and looking for connections that are convenient for their travel plans. It remains to be seen whether the latest airline merger between American and US Airways costs consumers more money by creating a monopoly situation or not. Mergers between all of the major airline carriers can help consumers by offering alternative routes and lower prices but they can also create situations where the industry sets prices and eliminates competition between companies.

Pierce #4
Annotated Bibliography

"Business." New American Airlines CEO-to-be Says Charlotte Hub Safe. N.p., n.d. Web. 08 Mar. 2013.
This article talks about the merger between US Airways and American Airlines and how the merger will affect many of the hubs throughout the US. It also

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