Mergers Result in Airlines Eliminating Routes

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  1. Newscience

    Newscience Gold Member

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    Travel Tip: Mergers Result in Airlines Eliminating Routes

    Posted by PeterGreenberg.com on February 27, 2014 at 5:43 am

    In today’s brave new world of airline mergers and consolidation, I know you want to know….how will this impact you, the traveler?

    When they announce their mergers, airlines usually say there will be more options than ever. But in reality, one of the first things merged airlines do is eliminate non-profitable routes.

    Most recently, United Airlines dropped Cleveland as a hub. That translated into a 60 percent reduction in air service, which is huge. But it’s not a surprise.

    We predicted this in 2010 when United first merged with Continental.

    Back in 2008, Delta and Northwest merged, and last year, we saw Memphis dropped as a hub. The city used to be a Northwest hub.

    If you recall, Delta even denied that it would close any hubs during Congressional hearings on the deal. But the fact is, Delta is based in Atlanta, which is less than 400 miles from Memphis.

    Any way you look at it, it’s not good news for travelers.

    The law of supply and demand means there are more people competing for fewer seats, which means airline fares are more than likely going up, up, and away.

    For more information, click the Airlines & Airports archive.

    Read this article here:

    http://petergreenberg.com/2014/02/27/travel-tip-eliminating-airline-routes/
     
  2. blackjack-21

    blackjack-21 Gold Member

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    Who'da thunk it at the time. And laying off people too! And even outsourcing! We never, ever, saw that coming.

    Or did we?
     
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  3. gregm

    gregm Gold Member

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    I'm not surprised. With the merger of airlines comes consolidation. Consolidation is generally geared towards increasing efficiency and reducing costs, hence the closure of hubs post merger.
     
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  4. blackjack-21

    blackjack-21 Gold Member

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    C.O.M.P.E.T.I.T.I.O.N. !!! While the inevitable loss of competition began years ago, when many airlines began going bust and another one buying up their bits and pieces, it's really made itself felt to the traveling public in recent years, moreso as the "big six" major carriers consolidated for whatever reason. Now there's the "bigger three", and only time will tell if bigger is really better. Some of the current participants have been through bankruptcies or nearly so several times and survived to fly again without the need to merge. Perhaps we just should have let the chips fall where they may, and let the really weaker one's fall aside as has happened in the past, while the stronger survivors pick up some of the pieces.That way, there might have been a few more major airlines in the U.S.still able to offer some differences in routes, fares, and better service, without all the drastic consolidations we've seen in the last decade and the resultant loss of COMPETITION, and loss of jobs, flights, hubs, and so many personell, along with ever increased costs for less comfort. Did everyone really not see or expect all of this to happen with the rush to combine all the players?

    And who ever thought that it would all begin with the discontinuance of one olive on a salad!
     
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