American merger could mean higher fares
US Airways has taken a bold step toward merging with American Airlines, a prospect that would leave the country with four major airlines and probably lead to higher ticket prices.
US Airways reached an agreement Friday with American’s three unions on what a combined airline would look like, drawing the unions’ support for a merger.
Analysts say the last combination of major U.S. airlines — coming on the heels of Delta-Northwest, United-Continental and Southwest-AirTran mergers — would consolidate an industry that’s increasingly left little room for smaller carriers.
"US Airways is in a position where if it doesn’t merge, it’s going to die," says Joshua Schank, president of the Eno Center for Transportation. "They saw this bankruptcy as an opportunity, and they’re taking advantage of it."
And, Schank warns, "you’re likely to see a bump in the cost of travel," particularly on flights between hubs served by US Airways and American such as Phoenix, Philadelphia, Chicago and Dallas.
If the airlines merge, the combined carrier would be called American Airlines and be based in American’s home of Fort Worth, according to Capt. Dave Bates, president of the Allied Pilots Association.
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