Tuesday, August 13, 2013

US Airways - American Merger Oppossed by US Department of Justice

Adding to the heated controvery, political uncertainty and maneuvering surrounding control of the Charlotte Douglas International Airport (CLT) the US Department of Justice weighed in and says that it is against the merger of US Airways and American Airlines, which would make CLT an even bigger one-airline hub. The reason for the objections according to Attorney General Eric Holder, is lack of competition and further consolidation of the airline industry, resulting in fewer choices and higher fares for travellers. The Business Travellers Alliance and several states piled on to applaud the Justice Department's move. With Jerry Orr and CLT's status in Limbo, these are trying times for those trying to do long range planning and strategy for the airport. Attorney General Holder's move is much like that of Caaptain Renault in the movie Casablanca : "I'm shocked, shocked to find that gambling is going on in here!" This cynical long-time observer of and commentator on the airline industry is amazed that it has taken some six US Presidential Administrations over the course of some 38 or more years to realize that deregulation of the US airline industry has resulted in fewer choices for consumers and an outmoded hub and spoke systems with fewer long distance non-stop or direct flights; itineraries that take as long as those in a DC-3; and in places such as Charlotte, a monopoly on flights and astronomical fares (try $3,000 To Washington Dulles on one day.) These are interesting times to be observing the future of the US airline industry in places such as CLT. But it will also be a bumpy ride over an uncertain course.

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