Aaron Gellman, who’s spent 40 years in and around the airline industry as an analyst, consultant, researcher, teacher and board member, is convinced of it.
“Concentration in any industry leads to higher prices,” says the veteran transportation economist who teaches at Northwestern University in Chicago.
By implication that means the proposed merger announced last month between United (UAUA) and Continental (CAL)— to create the world’s biggest airline and trim to four the number of the USA’s big “legacy” airlines with routes around the country and the globe — won’t be a good deal for travelers.
But that may not be true in today’s air travel market, in which competition from low-cost airlines has grown even as big legacy airlines have merged and formed partnerships.
The best evidence: Airfares today are cheap by historical measure.
FULL STORY: http://www.usatoday.com/money/industries/travel/2010-06-22-mergerfares22_CV_N.htm
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