American-USAirways On the Verge

USAirways and American are ready to announce their merger this week.  The U.S. DOT, known for rubber-stamping every merger between domestic carriers, is ready to do it again, albeit show some spine in requesting very few landing slots to be divested by the merged carriers in airports such as Reagan National.

For the passenger, the merger will likely mean higher fares, worse service and integration problems between two disparate carriers.  USAirways, which acquired America West in 2005 still has not streamlined their pilots' contracts.  The combined carrier will have a dominant presence in several domestic hubs but will continue to lag badly in the Pacific and Europe. www.premieretravel.com