jm-airbus320
Posts: 294
Joined: Tue Aug 29, 2000 2:49 am

UAL+US, AA+TWA Are These Mergers Doom For Other's?

Wed Jan 10, 2001 1:17 pm

With the impending mergers of UAL+US, AA+TWA is this trouble for the rest of the industry? Forecasters see these as creating market share juggernauts in the US, but what about the rest of the world's airline industry? Will we see these combinations forcing smaller or medium sized airlines to codeshare with them in order to survive?,or will they be wiped clean off the aviation scene by these megapowers?
Food for thought: will passengers really benefit in the long term from these mergers, the slash pricing technique will certainly come into place, but what happens when the competition has been eliminated. A public held at ransom by pricing? Let me know what you think. The US congress can maybe control whatever is to come, but what about those tiny countries who can't?
jm-airbus320
 
N628AU
Posts: 355
Joined: Wed Oct 18, 2000 4:20 am

RE: UAL+US, AA+TWA Are These Mergers Doom For Other's?

Wed Jan 10, 2001 1:23 pm

I think it is very interesting that the day after all the hoopla about how this buyout is going to push the UA-US deal thru to approval, more opposition has come out. This could be American trying to prove the critics right and forcing the hand of the DOJ to throw both of them out. Will be an interesting few months to say the least.
 
thesilverbirds
Posts: 90
Joined: Tue Jan 09, 2001 4:47 am

RE: UAL+US, AA+TWA Are These Mergers Doom For Other's?

Wed Jan 10, 2001 1:39 pm

Even more to add to this. Once both of those mergers have gone through, if they do, Northwest will most likely merge with Continental. Thus leaving Delta alone amongst the large US based carriers. Listen to this; In 2000, Delta held 20% of domestic travel in the US, and so did Southwest. Southwest is growing as we speak and with little time will surpass Delta. Interesting stuff, huh?
 
User avatar
VirginFlyer
Posts: 4139
Joined: Sun Sep 10, 2000 12:27 pm

RE: UAL+US, AA+TWA Are These Mergers Doom For Othe

Wed Jan 10, 2001 2:56 pm

I saw a cycle regarding the idea of consolidation (it was in realtion to rail...)

Deregulation/startups -> mergers/consolidation -> regulation -> breakups -> deregulation...
"So powerful is the light of unity that it can illuminate the whole earth." - Bahá'u'lláh
 
mbj-11
Posts: 331
Joined: Tue Aug 29, 2000 2:29 am

RE: UAL+US, AA+TWA Are These Mergers Doom For Other's?

Wed Jan 10, 2001 3:05 pm

These mergers are setting a dengerous standard.Airlines such as those from the Caribbean can be forced out of business. This merger is definitely gonna put the airlines worldwide under pressure, those who are not in alliances are really gonna suffer.
Jesus is the Christ and he alone saves
 
Ryefly
Posts: 1324
Joined: Wed Jun 21, 2000 7:56 am

RE: UAL+US, AA+TWA Are These Mergers Doom For Other's?

Wed Jan 10, 2001 6:06 pm

In my opionion, I can see obvious advantages and major disavatages to all this merging. Maybe I just always try to see the good points who knows. Some good points of these HUGE airlines are new routes to cities or counties that are not currently being served. Improvements on FF miles for passengers and easy connection of flights, baggage and improved schedules. I think the smaller airlines can survive just fine as well if they can offer a good product in which the customers and employees can form a bond with them. In a smaller airline this is a lot easier then a mega carrier. Some airlines like Piedmont, the new Midway, Jet Blue and Southwest have been sucessful in this style of business.

We will begin to see frustrated passengers at major hub airports around the coutry because of an increase of traffic delays at the key locations. Charlotte would be one of these airports if United wants to expand drastically. With increases in ticket prices, lost baggage, poor service, over crowded hubs people will begin to choose the smaller carrier or drive to a less crowded airport with more competitive prices. For example this is already going on at Raleigh Durham over Charlotte. This will only help out the smaller airports in my opinion. Finally, these maga carriers will begin show signs that they have grown to large to fast and will begin to streamline its fleet and over all size down. Eventully, the industry will bring us with about the same ammount of airlines as we have today but with different names. Airlines such as Southwest, Midway, Air Tran, Jet Blue, Alaska, Frontier, may be playing the parts of todays, US Airways, Continental, Northwest in the not too distant future. Wouldn't it be kinda ironic for these large airlines getting swallowed up by names like Jet Blue and Frontier? Its sorta like The big fish eating a baby fish's older brother. Then the fish grows up and look who's invited over for dinner. 

Who knows, its a tricky industry. What logically makes perfect sense never seems to happen when we all sit back and look at things. Its fun to try and figure out though.

Popular Searches On Airliners.net

Top Photos of Last:   24 Hours  •  48 Hours  •  7 Days  •  30 Days  •  180 Days  •  365 Days  •  All Time

Military Aircraft Every type from fighters to helicopters from air forces around the globe

Classic Airliners Props and jets from the good old days

Flight Decks Views from inside the cockpit

Aircraft Cabins Passenger cabin shots showing seat arrangements as well as cargo aircraft interior

Cargo Aircraft Pictures of great freighter aircraft

Government Aircraft Aircraft flying government officials

Helicopters Our large helicopter section. Both military and civil versions

Blimps / Airships Everything from the Goodyear blimp to the Zeppelin

Night Photos Beautiful shots taken while the sun is below the horizon

Accidents Accident, incident and crash related photos

Air to Air Photos taken by airborne photographers of airborne aircraft

Special Paint Schemes Aircraft painted in beautiful and original liveries

Airport Overviews Airport overviews from the air or ground

Tails and Winglets Tail and Winglet closeups with beautiful airline logos