It’s a new prayer in the aviation industry. Lord please give me my daily merger.
I hardly had time to digest the impact of the United Airlines/Continental merger when this morning Southwest and AirTran said they were getting married.
The dowry is $1.4 billion…not a bad way to start a marriage.
Some people are happy about the merger, which really isn’t a merger but a purchase by Southwest.
“For Grand Rapids there’s no downside to this merger,” said Koslosky, airport director for the Gerald R. Ford International Airport in Grand Rapids is reported as saying. “Just like the Delta/Northwest merger, we actually gained service as a result of that.”
And in certain cases there will be an advantage, but in all these mergers that have taken place around the world, the long term benifits are for the airlines only.
Prices will go up. No serious analist believes anything but that. And as said in a previous blog, it is more often than not that the bad apples spoil the good ones. So those cost saving policies that reduce service to the consumer are those that are implimented far ahead of the ones that bring consumer satisfaction.
So we congratulate the victor in this case…because that what it is…a victorious Southwest who now will impose change on AirTran.