In an August 13th article titled “Feds fighting against US Airways-American merger likely good for business travelers, Sky Harbor” Greg Raiff, CEO of New Hampshire-based Private Jet Service Group, contends the proposed US Air-American merger would reduce service to second-tier U.S. markets outside of cities like New York, Los Angeles, Chicago and Miami, and leaves the domestic airline marketplace with less competition.
The article goes on to discuss the implications of the US Justice Department’s recent anti-trust suit again the merger of US Airways and American.
The current traditional airline business model as focused on lucrative international and business routes. Merger plans have called for the new combined carriers to be based in American’s home in Fort Worth, Texas and not US Airways’ Tempe base. It would fly under the American Airlines banner. Past airline mergers have also resulted in some major scaling back at what used to be hub airports.
DOJ attorneys worry the merger will reduce the number of traditional airlines resulting in higher prices.
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