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Squawks & HeadlinesAirline Mergers May Have Already Led To Higher Fares

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Airline Mergers May Have Already Led To Higher Fares

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NEW YORK (AP) — The government is putting its foot down on rising airfares and fees by blocking the latest airline merger — but for fliers, it's already too late. The past decade has seen the largest transformation of the airline industry in a generation. Prior to 2005, there were nine major U.S. airlines. Today, just five. (news.yahoo.com) More...

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ChicagoCenter
ChicagoCenter 1
I think we also have to look at how expensive mergers have become. At times like this, mergers have to happen to keep the industry alive as part of common everyday industry practice. Would indeed be interesting to hear from FBO operators / managers how much prices for fuel and such have risen or fallen, etc.
eckstrombryan
Bryan Eckstrom 1
http://www.indexmundi.com/commodities/?commodity=jet-fuel&months=360 this chart goes back to 1990 . i think far back enough when we still had 9 airlines
Moviela
Ric Wernicke 1
It was better when the CAB set fares. No one could charge a lower fare so they competed for passengers by offering service. Pilots were well paid, cabin crew was young enough to open the door by themselves, planes were kept in fine condition and spotless, and you could use any ticket on any airline. There were no silly rules driven by an elastic price sheet, and no one trapped overnight because they missed the last flight.

This hue and cry about competition is a red herring. It is Kabuki Theater, just like the TSA. This is about a too big to fail Bank stealing the equity of AMR from the stake holders. Parker had this deal on the fast track, except the bankers have their eye on this sweet little plum and will use their Washington errand boys at Justice to deliver AMR into their hands.
pwhitcomb
Parker Whitcomb 1
Yes, because increased fuel, equipment and labors costs have done nothing to affect the increase in fares, blame it on the mergers! I for one am happy to finally see a healthy airline industry and not having an airline file for bankruptcy every other month. If that means airlines have to merge, so be it. People want better quality, but don't want to pay for it, think they are entitled to everything, unfortunately you are entitled to nothing! Here again, government sticking its nose in something it doesn't have a clue about. Good grief, they can't even do their own jobs of simply running the country.
preacher1
preacher1 2
I don't really disagree with your post but you would not see an RT from ATL-LAX for $500 or so in CAB days. I am in agreement with the banks picking AMR clean and US will be looking for another dance partner just to survive. Horton don't care with his $20 million parachute.