The rumored merger talks between United and American Airlines could create an unprecedented concentration of power in the commercial aviation industry.
The airline created by merging the No. 1 and No. 2 carriers would control roughly 40% of US capacity when the available seats are adjusted for miles flown. That degree of consolidation would worry rivals, which could be forced to pursue deals of their own.
It could also raise costs for the millions of passengers who book flights on virtually any US airline, according to airline experts.
“The idea that we would have one airline responsible for four out of ten flights every day is beyond horrific,” said William McGee, a senior fellow for aviation and travel at the American Economic Liberties Project, a public interest group concerned with corporate mergers. “It would be harmful to consumers, harmful to labor, harmful to entire cities and regions.”
United Airlines CEO Scott Kirby has approached Trump administration officials about seeking preliminary approval for a merger between his airline and American, according to reports by Bloomberg and Reuters. United declined to comment, and American did not respond to a request for comment. But the reports sent shares of American Airlines climbing.
Continue reading the complete article on the original source
