People determined to fly via cheap airplane tickets or cheap vacation packages often assume that airline mergers result in increased fares because there is less competition. A recent study of the four big mergers between airlines over the last decade found little impact on airfares as a result of those mergers.
The following are the largest mergers of U.S. airlines over the past 10 years: US Airways combined with America West in 2005, Delta with Northwest in 2008, United with Continental in 2010, and Southwest with AirTran in 2011.
United & Continental Pilots Approve Contract
The availability of cheap fares, including cheap airplane tickets and cheap vacation packages is expected to be unchanged as a result of pilots at United Airlines and the old Continental Airlines agreeing to a single union contract.
As part of the new contract pilots are getting raises averaging slightly above 43 percent including larger retirement contributions. A lump sum of $400 million is also being distributed to the pilots.
This contract makes United the last of the three largest U.S. airlines to gain pilots' approval for a major expansion of the use of larger regional jets with a minimum of 70 seats.
67 percent of the United and Continental pilots voted to approve the contract. Almost 98 percent of its over 10,000 eligible pilots participated in the ratification vote. The new contract expires at the beginning of 2017 and replaces the most recent United pilots contract completed in 2005 when the airline was operating under bankruptcy protection.
Pilot union representatives hailed the new contract as the end of bankruptcy and concessionary contracts.
While the raises and some of the other changes take effect immediately, United and former Continental pilots will continue to fly separately until United finishes sorting out its pilots seniority list.
Seniority is important because it determines which pilots receive the most desirable schedules, and who flies which planes, which in turn is a significant factor in pilot pay. Seniority integration will take several months and may require binding arbitration.
The airline industry has been pushing to expand the use of 76 seat planes because they can be flown profitably even when fuel prices spike. Pilots have generally opposed the use of such planes because they do not want airlines to shift too much flying to the smaller, cheaper planes.
http://www.cheapfares.com
The report, by profession services firm PwC US, found that the average domestic ticket price increased slightly less than 2 percent each year from 2004 to 2011. While fare surges were witnessed on select routes, overall the impact was minor.
These mergers also did not reduce flight choices overall. In 2004 the top 1,000 routes were served by a little less than two competing airlines in 2004. This number remained about the same in 2011.
History has shown if one airline exits a market after a merger, typically a competing large airline or low cost carriers enter the market, helping to maintain competition.
Airlines have recently posted some of their best performance results. During the first six months of this year the airline industry experienced its lowest rate of mishandled luggage on record - under 3 instances per 1,000 fliers.
http://www.cheapfares.com
The following are the largest mergers of U.S. airlines over the past 10 years: US Airways combined with America West in 2005, Delta with Northwest in 2008, United with Continental in 2010, and Southwest with AirTran in 2011.
United & Continental Pilots Approve Contract
The availability of cheap fares, including cheap airplane tickets and cheap vacation packages is expected to be unchanged as a result of pilots at United Airlines and the old Continental Airlines agreeing to a single union contract.
As part of the new contract pilots are getting raises averaging slightly above 43 percent including larger retirement contributions. A lump sum of $400 million is also being distributed to the pilots.
This contract makes United the last of the three largest U.S. airlines to gain pilots' approval for a major expansion of the use of larger regional jets with a minimum of 70 seats.
67 percent of the United and Continental pilots voted to approve the contract. Almost 98 percent of its over 10,000 eligible pilots participated in the ratification vote. The new contract expires at the beginning of 2017 and replaces the most recent United pilots contract completed in 2005 when the airline was operating under bankruptcy protection.
Pilot union representatives hailed the new contract as the end of bankruptcy and concessionary contracts.
While the raises and some of the other changes take effect immediately, United and former Continental pilots will continue to fly separately until United finishes sorting out its pilots seniority list.
Seniority is important because it determines which pilots receive the most desirable schedules, and who flies which planes, which in turn is a significant factor in pilot pay. Seniority integration will take several months and may require binding arbitration.
The airline industry has been pushing to expand the use of 76 seat planes because they can be flown profitably even when fuel prices spike. Pilots have generally opposed the use of such planes because they do not want airlines to shift too much flying to the smaller, cheaper planes.
http://www.cheapfares.com
The report, by profession services firm PwC US, found that the average domestic ticket price increased slightly less than 2 percent each year from 2004 to 2011. While fare surges were witnessed on select routes, overall the impact was minor.
These mergers also did not reduce flight choices overall. In 2004 the top 1,000 routes were served by a little less than two competing airlines in 2004. This number remained about the same in 2011.
History has shown if one airline exits a market after a merger, typically a competing large airline or low cost carriers enter the market, helping to maintain competition.
Airlines have recently posted some of their best performance results. During the first six months of this year the airline industry experienced its lowest rate of mishandled luggage on record - under 3 instances per 1,000 fliers.
http://www.cheapfares.com
SHARE
