People that routinely travel by plane usually have their favorite type of Airline they feel comfortable flying with, and with a recent merger of airlines people will now have their choice between four big name carriers.
The boards of American parent AMR Corp. and US Airways approved a deal Wednesday that will merge the two companies. The new merger also just received approval by AMR’s bankruptcy judge and antitrust regulators earlier today. American Airlines and US Airways had been in the works since August of 2012 to combine companies, and now the merger will make it the world’s biggest airline according to Yahoo.
US Airways CEO Doug Parker will run this massive company, but the name will still remain American Airlines. The new airline will be supplied with over 900 planes, close to 100,000 employees, and will have just over 3,000 daily flights. If you take in consideration the deal getting done American along with United, Delta, and Southwest will now control three-quarters of the US airline traffic.
With such a big adjustment to the airline industry there are of course people that are on both sides of this new merger.
“I don’t think it’s going to impact airfares significantly, I think that we’re seeing a dynamic already where the airlines are passing on the increased cost of fuel and labor to the consumer,” William S. Swelbar researcher at the MIT International Center for Air Transportation said. “I’m not prepared to see egregious gouging by the airline industry just because of this merger.”
There are some Analysts who see the two airlines as a good match, combining US Airways’ strength in the eastern part of the country and American’s greater influence in the West and global destinations according to Washington Post.
“I think people are going to frame this merger as fares going up and that’s bad for the public, however I think it has economic benefits for a country to be able to have a stable airline industry, maybe this will outweigh the slight increase in fares, but fares are still low, and more people are flying,” President of the nonprofit Eno Center for Transportation, Joshua Schank said.
Don’t expect to see these changes anytime soon though. Travelers on American and US Airways won’t notice immediate changes, and will most likely be months before the frequent-flier programs are combined. It will also be years before the two airlines are fully integrated and provide new stations throughout the United States. It may be a blessing that the two airlines are merging together, especially for American Airlines as they were ranked near the bottom for on-time performance last year.
“They are continually at the bottom in on-time and customer service, and they’re losing more money than anyone else, American’s management is leaving because that’s what needed to happen in order to change the success of the company around, ” Bob Herbst, a financial analyst who studies airlines said.
So if you are a frequent or casual flyer, do you like the new Merger?
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