Source: The Points Guy
Summary
United Airlines CEO Scott Kirby has reportedly floated the idea of a merger with American Airlines to top lawmakers in Washington, D.C. While a merger between the two airlines is considered a long shot due to regulatory hurdles, it could potentially lead to higher airfares and reduced competition. The tie-up would require regulatory approval and could result in asset divestitures, including gate space or takeoff and landing rights at major U.S. airports.
Our Reading
The escape is carefully planned.
A merger between American Airlines and United Airlines would create a mega-carrier roughly twice the size of Delta. The tie-up would require regulatory approval and could result in asset divestitures, including gate space or takeoff and landing rights at major U.S. airports. The merger would also likely lead to higher airfares and reduced competition. In the end, consumers would be left with a far shorter list of airlines to choose from when booking flights. The merger would be the ultimate example of a “carefully planned escape” from competition.
Author: Evan Null
