The reports of a possible merger of US Air and Delta could translate into higher priced airline tickets.
The proposed deal, put forward by US Air earlier on Wednesday, would help the merged airline cut costs and expand its network, but would likely mean fewer flights on some routes, and higher ticket prices.
"If carriers have overlap, there's typically a reduction in service," after a merger, said Stuart Klaskin at KKC Aviation Consulting. "The less service that's available, the more scarce the commodity -- seats. Therefore, there's room for upward pressure on pricing."
"If carriers have overlap, there's typically a reduction in service," after a merger, said Stuart Klaskin at KKC Aviation Consulting. "The less service that's available, the more scarce the commodity -- seats. Therefore, there's room for upward pressure on pricing."
No comments:
Post a Comment