WeAAsles
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- Oct 20, 2007
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- #136
"If the airlines don't merge, they might offer lower prices, but could ultimately be forced to cut routes or go out of business as they try to compete with much larger United and Delta, themselves the products of mega-mergers over the last few years"Worldport said:I believe he was referring to 2008 they survived because the other airlines grounded (took out of service) around 400 aircraft the equivalent of a good sized airline
RISK OF STAYING SMALL
Airline analysts and consultants said the DOJ complaint reflected government misunderstanding of how the industry operates and how it has changed. American Airlines, the No. 1 U.S. carrier before the spate of mergers, is now the third-biggest behind United and Delta.
The Justice Department contended that American and US Airways, the fifth-largest U.S. carrier, have posted improved financial results and can survive as independent carriers.
Robert Mann, an airline consultant in Port Washington, New York, responded that without the merger, American could ultimately be squeezed out of getting more business accounts.
"You get corporate accounts chiefly because you have the best network," Mann said.
http://www.reuters.com/article/us-airlines-consumers-analysis-idUSBRE97F10020130816