Friday, February 15, 2013

American Airlines – US Airways Merger

US Airways has landed the long sought after merger with American Airlines. This merger will create the country’s largest airline and decrease the competition. The combined American Airlines will offer more than 6,700 flights each day, to 336 destinations in 56 countries.

What could this mean for you? With less competition, the pressure to increase airfares will surge. On the bright-side, all frequent flyer miles will be honored in both programs. There are a few kinks that need to be worked out when merging and details will be provided to the customer at a later time. This could also mean flights to Asia, which both companies currently lack.

In the end, we can only speculate what outcomes this merger will bring. Still, there are mergers in the foreseeable future for smaller airlines. This deal is leading us towards a less competitive market in the airline industry.          

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