Another airline message has been consumated…so why arn’t the celebrations going on in full force?
There are lots of reasons not to haul out the banners and the horns with a big band leading the wedding march.
Firstly, it is a sign of how sick the airline industry became over the past recession. Regardless of how it is promoted, this is not a merger of opportunity, it is a merger of survival.
Airlines worldwide have been merging one after the other over the past few years, escalanting even faster during the past two years.
In each case one of the partners or both were suffering terribly…so the moves were little more than means to prop up the entity of the least strength.
The voices who would have once clamoured against the merger because it stripped away competition were silent in the US this time.
This all comes at a time that airlines are beginning to round the curve towards profitability. Those nasty anciliary charges have been a great help in getting them there.
The price of oil has come down so dramatically that the airlines of the world should begin giving us a fuel surcharge rebate. Don’t count on these hidden fees disappearing quickly either.
Competition on routes will be eliminated.
Fares will go up.
The bad apple will rot the good one. A recent article pointed out that Continental’s service was far superior to United’s. I betting on a downward slide.
Let us join in silent applause in congratulation everyone involved for in what can only be looked at as an economic shotgun wedding.
Que the confetti tossers.