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Airline Merging Help or Hurt?

As today’s economy has its ups and downs the airline industry if constantly fighting to gain loyalty and support. This is something that is hard to do when flights are constantly delayed, service is bad, and flights have to be re-directed on a daily basis. The industry itself has to juggle increased prices in fuel and costs for maintenance and repair. These increased costs end up being pushed on the customer.delta.logo

In January Delta and Northwest decided to merge to create world’s largest airline. This can be seen as a threat to the airline industry or a helpful start. Many are worried about a monopoly forming resulting in higher ticket prices. The Los Angeles Times states:

“The pact came amid one of the industry’s most tumultuous periods as three airlines collapsed in one week”

so hopefully the companies will look out for the interest of the customer. Dana Hobart, an aviation law expert at the Los Angeles firm of Hennigan Bennett & Dorman says:

“For the two carriers, this merger is a very important step to keep from going out of business,” said . “But for the flying public, it’s not so good because there will be reductions in routes and services.”

Northwest_Airlines_airplane_4c42.JPGAs travelers, we will have to wait to see how the consolidation effects us. Both of these airlines have varied routes meaning lots of consolidation for flights. But maybe there will be good out all of this. US Airways CEO says the airline industry is extremely competitive and its fragmentation causes it to not be profitable. So maybe mergers will help customers during this difficult economy!

[kml_flashembed movie="http://www.youtube.com/watchv=ZjdhG4P8qjk" width="425" height="350" wmode="transparent" /]

This video shows customers mixed opinions with the new merger!

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