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Airlines changes - positive?

What with US Airways/American merger and required loss of slots, the partnership between Delta/Virgin, and additional flights by Emirates, Qatar and Etihad, will there be a positive impact on customers from North America traveling to to/from Europe?

Posted by
23230 posts

Why would there be a positive impact? So far all of the airline moves have been designed to reduce expenses and increase revenue. Only two ways to increase revenue - higher fees and more people in the same space. All of the mergers have led to reduced capacity which is one. Excess capacity is about the only thing that can drive down fares. I doubt if the idea of increase passenger service or comfort is ever discussed in a merger.

Posted by
9363 posts

I don't see anything positive about it. Mergers give customers less choice because there is less competition.

Posted by
7049 posts

There are so many variables, it's hard to answer that until everything shakes out (depends what you mean by positive - in terms of price only or customer service or convenience or what exactly? Short-term or long-term?). My closest airport is dominated by US Air and they're expected to "cut capacity by 15%" (pretty general statement, right?). I don't know who will fill the gap or which routes will be cut or what the fuel costs are going to be in the future or what the economy will look like or what the new airline program/policies will be...etc etc etc. So I won't even pretend that I know (never mind that it also depends which customers and locations). I will confess I got a very short lived boost when Northwest/Delta merged because I could finally combine frequent flier miles and actually use them.

Posted by
2081 posts

this is just my opinion and time will prove either way.

but i think we just got screwed.

corporations were created to make $$$. being nice and doing something for the benefit of others isnt in their wiring. they would not do it unless there was profit involved and probably alot.

happy trails.

Posted by
15119 posts

We are pretty much left with 3 US based airlines that offer transoceanic service (American, Delta and United). And their foreign competitors are basically affiliated to them through their international alliances (One World, Sky Team and Star Alliance respectively).

So we now have an oligopoly by 3 players, the 3 alliances mentioned above.

How can that be good for consumers? Less competition=higher prices and/or worse service.

I'm looking forward to Southwest and Jet Blue to start flying to Europe. Even better we need Ryan Air and Easy Jet to come to North America and shake things up a bit.

Posted by
2359 posts

Of course it is going to be good for us, the consumers. I just read an article that AA has to give up some gates for merger to go thru so that will open up more competition which will drive prices down. Can't remember who wrote that article but would love to tell that person that the Brooklyn Bridge is still for sale!

Posted by
8120 posts

The merger certainly cannot hurt the traveling public with serious labor and profitabilty problems at AA.

American Airlines' service has deteriorated greatly over the years to where it's just not the same airline that it was in years past.

U.S. Airways is a second tier airline in customer service, etc., and they could certainly use a change in corporate culture. U.S. Air was actually the lowest U.S. carrier in prices to much of Europe through 2012, but they have since raised prices to where they're mid pack.

Hopefully consolidation will give both airlines a new lease on life and improve service levels, etc. in the future.

Right now, there are basically three "alliances" or code sharing groups of airlines that are controlling the airfares to and from Europe. And with record airfares, airlines have done a great job of keeping the supply low, demand high. If airlines cannot operate a route profitably, they'll just cancel some flights in order to pack the planes.

The U.S. Airways-American Airline merger is going to stir up some of those alliances. For example, some of the "air miles" available for use on different partner airlines will no longer be available. Many European travelers flying on miles may be losing them with the AA/USAir merger.

In past months, I've been watching airfares closely for Spring and Summer, 2014. They're as high as Summer, 2013, and there have been very few "one day sales."

After the American Airlines/U.S. Airways merger is completed and they get their feet on the ground, I wouldn't be surprised if the New American Airline might offer some sale airfares to Europe to generate incremental traffic and to go after Delta Air. But such activities would probably be seen the Q/1, 2014.

Posted by
23230 posts

Nice see at least one optimist. Is part of the theory that AA cannot get any worse?