The Economic Impact Of Airline Mergers

The Economic Impact Of Airline Mergers

The Justice Department, along with several state attorneys general, dealt American Airlines and US Airways an unexpected blow by seeking to block their proposed merger. The airlines say their union would increase competition, but critics fear higher prices and reduced service. Diane and her guests discuss the impact of airline consolidation on consumers and local economies.

The U.S. Justice Department took most everyone by surprise yesterday. Along with six states and the District of Columbia, it sued to block the merger of American Airlines and US Airways. The two airlines were just days away from a bankruptcy court hearing which they hoped would confirm their exit plan. The carriers claim their consolidation would benefit consumers by creating a new airline that could compete with rivals that have already merged. But critics and Justice officials say the transaction would result in higher fares, higher fees and fewer choices. Diane and her guests discuss the economic impact of airline mergers.

Guests

Charles Leocha

director of Consumer Travel Alliance.

George Hamlin

president of Hamlin Transportation Consulting.

Holly Hegeman

founder and CEO of PlaneBusiness.com.

Ben Mutzabaugh

editor of USA Today's "Today in the Sky" blog.

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