USAirways and American Airlines received the "all clear" from the DOJ to proceed with their merger that was blocked and pending trial later this month. The settlement resulted in minimal concessions in what is considered to be a complete victory for the carriers. As a result, few airport slots primarily at Reagan National and LaGuardia will be surrendered by the combined carrier. However, as the airlines have threatened, service to/from some smaller airports will be reduced or discontinued and the carriers will get to keep all their profitable routes. After the DOJ moved to block the proposed merger, the carriers mounted a furious campaign suing the Department of Justice and implemented a full court press lobbying offensive that resulted in an outcome that surprised most observers who expected the DOJ to extract far more concessions. "Low cost carriers" will be in line for the vacated slots. Southwest and Jetblue will be eager to pick up the slack. Fare differences between "low cost" and legacy carriers have been shrinking over the past 3 years and in some cases the low costs have been matching legacy carriers with comparable fares. It is unlikely that passengers will benefit, and fares once again are likely to rise with reduced competition.
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