White paper lists AA-US merger competition concerns:
According To Air Transport World's, Karen Walker, a merger of American Airlines (AA) and US Airways (US) could substantially reduce competition, leaving four majors controlling over 70% of the US domestic market, according to a white paper released Wednesday.
US has made clear its interest in pursuing a merger with AA, which is restructuring under Chapter 11 bankruptcy protection, and AA CEO Tom Horton in July said it made sense to evaluate the possibility, but no formal process has begun (ATW Daily News, July 11).
In a jointly produced paper, the American Antitrust Institute (AAI) and Business Travel Coalition (BTC) say the merger could lead to the creation of a four powerful, closed airline systems that would be virtually impermeable to competition and could create a hostile environment for low-cost carriers (LCC) and regional airlines.
Is anybody really surprised at this. As some observers prophesized de-regulation has resulted in less competition; loss of service to many communities; and travelers complain about shoddy customer service. Most airlines have made lack of communication and contact with their customers an art form...and business travelers pay thousands of dollars to fly business class to avoid being stuffed like sardines into three by three 31 inch pitch seats, the risk of deep veinb thrombosis, and being bracketed by whining children.Is the air travel "bubble" about to burst in the USA? Can A4A get its members to adopt better business practices?
Excellent article. If more people protest, maybe we can at least slow down the degradation of human life by U.S. airlines.
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