Airline passenger news and views

A DMR Service

19 May 2012 |

News & Articles Comments  

Mergers are here to stay

Have BA got it right?

Jasper Kelly Jasper Kelly
Wednesday 29 September 2010

Many things that affect the British traveler start in America and so I have been interested to watch the impending merger of United and Continental Airlines.

By itself, this bit of corporate re-organisation will not have much effect on us over here but it should be viewed as part of a growing trend of consolidation.  In the background, another American carrier, Southwest Airlines are trying to buy competitors AirTran and this puts more pressure on the regulators.

The problem is finding a balance between efficiency and passenger competitiveness. Big airlines do operate more economically. They also rip competition out of the market, push up prices and reduce choice on routes and times. For the regulators, this is a tough call. But, the trend is clear, and watching British Airways should give us an idea of where our market is going.

Back in the USA, American Airlines, lost out badly after Delta and Northwest merged. Business travelers demand integrated route choice and only the bigger airlines can offer this.

For America today, read Europe in two years time.

David Wilkins
David Wilkins, Dorset
28 January 2011, 02:03PM

Competition will be damaged by this merger. I appreciate that Willie Walsh has a primary obligation to British Airways but the regulators should be making sure that BA do not misuse or abuse the strength of their position at Heathrow.

  Rating (0)
Name *
Location
E-mail
Comment *