It is just a matter of days before the U.S. Department of Justice is going to approve the merger between American Airlines and US Airways. Industry experts are predicting that this merger will surely benefit passengers and help to build a super airline, including air charter flight services as well. In fact most of the industry heads feel this merger will result in a highly competitive super carrier and so the government will surely not delay in rubber-stamping this union as soon as possible.
However, it is to be remembered that there are always two sides to a coin. Along with all the benefits there will be numerous problems associated with this so called grand union.
Passengers will have to pay more and get less.
Cities are most likely to lose airline service.
And, the worst thing is thousands of airline employees will lose their jobs.Looking from this perspective, it seems that the Justice Department will certainly do a favor if it denies permission for this takeoff.
Last month, in a Senate hearing, US Airways CEO Doug Parker claimed, “the new American will be a stronger and better competitor. We will bring more and better service to more destinations than ever before. We will offer competitive prices and convenient travel times. We will remain committed to all communities – large and small.”
More services? In a U.S. Government Accountability Office report, it is clearly mentioned that after the merger, 1,665 airport-pair markets will be losing one very important competitor. And, this is likely to affect more than 53 million passengers.
Better services? If customer service benchmarks are taken into account, the merger will certainly not imply better services. American Airlines and US Airways scored 65 and 64 out of 100, respectively, in the American Customer Service Index (ACSI) report. Last year US Airways was rated as the second most complained-about airline, and the American got the third place. This was according to the Transportation Department report.
Improved facilities? Even at a time when the regulators are considering on the union, the American Airlines declared that it would try and squeeze a few more seats on the McDonnell Douglas MD-80 and the Boeing 737, after the merger. No wonder many air travelers have decided to call the “new” American as “Cram-erican”.However, this merger will definitely have some positive aspects for all kinds of flights, be it the normal plane services or the private charter flights.
A combined airline will certainly be a very formidable competitor and will enjoy a very commanding presence in numerous important markets, which includes Washington, D.C.
At Reagan National Airport, US Airways controls more than 55% of the takeoff and landing slots. After the merger, that number will certainly rise to 67%.So it can be said without a doubt that after the merger between American Airlines and US Airways, the airline, both in its normal and other special air charter flight services will certainly become a colossus of the skies. So, even if it won’t grow stronger by the day, it will certainly be much bigger.