Many travelers are interested in the potential impact on cheap airplane tickets and cheap vacation packages of the three major airline mergers in 2010: United and Continental, Southwest and AirTran, and Delta and Northwest.
Experts believe that the United and Continental merger may result in a reduction of service. Fortunately most of hubs for each airline had little overlap. However, Los Angeles was a major destination for both airlines, with both operating overseas flights to Hawaii and beyond. Typically smaller cities are at a greater risk of major service reductions as a result of mergers.
Flight reductions are less likely with the Southwest-AirTran deal, since Southwest has repeatedly claimed that it purchased AirTran solely as a means to grow.
The Southwest merger creates a stronger distinction between the top and second tier airlines. Alaska, JetBlue, and US Airways are now even further behind Southwest in regards to the number of passengers carried, seat miles available, and revenue.
The biggest concern experts have about Southwests growth is whether it will be able to maintain its reputation as a reasonably priced, customer-focused airline since fast growing airlines usually face escalating costs.
The new, larger United and Delta airlines now control 40 percent of the total U.S. market. There remain only four global U.S. airlines.
Unfortunately with fewer airlines trying to attract passengers, there is less incentive for them to slash prices. Whether this too will lead to higher prices is still unknown.
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