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American Looking at 5 Airlines for Merger Partner.
American Airlines Is looking at 5 different airlines to see which one they would like to merge with. (www.chicagotribune.com) Más...Sort type: [Top] [Newest]
I do not believe any merger should be allowed. The airline industry in the US is controlled by 5 airlines, UAL, DAL, USA, AAL & SWA right now. Do we really want to make it 4 airlines?
It actually does need to happen... Right now, DAL and UAL have a pretty big monopoly that no one else can compete with. If AA were to merge with someone else the competition would drive prices down at UAL and DAL. The reason they can provide competitive services is because they found ways to do it cheaper and since they are so big they cant really be touched but if AAL were to merge prices would drop, service would be better and more efficient, and you would see more routes that have dissapeared reappearing because the markets could now be served in a cost-effective manner.
I am afraid we will have to agree to disagree on this point. I do not believe less competition will produce lower prices or better service.
Ok, so what happens when DAL and UAL wipe out the other competition since no one can compete cost effectively? The prices start to rise... Unless there's a level playing field all around then there's is some sort of monopoly. For example one of the only electric companies here in NYC is Con Edison. They charge outrageous prices because they have effectively wiped out all other competition or they dont have the means to compete on their level. Point is competition is good, there's a better product when it's competitive and it has a better cost because it comes at some sort of sacrifice and you really have to work at it to sell it lol.
If they were to go with US Airways, AA's management would be out the door and US Airways Management would be taking over which is why AA is trying to find someone else because they want to be in control even though their management team has proven oon many occasions to be incompetent.
Those five, other then US air, would look like take-overs rather then mergers.
My personal feeling is Jet Blue, although he might do US Air just to be able to personally fire Doug Parker for all the grief & aggravation he has caused him.