As experienced travelers worry over how the United and Continental Airlines merger might impact cheap airplane tickets and cheap vacation packages, some are concerned that a rumored merger between American and US Airways could further stifle competition in the air and lead to higher ticket prices.
Such a combination would create an airline that would challenge the worlds newly created number one airline, namely United, for bragging rights to being the worlds largest airline.
American and US Airways are the last stand alone legacy U.S. airlines. Many industry analysts believe that the only way for the large U.S. airlines, that have been losing money for years, to make a profit is through consolidation and cost cutting.
US Airways appears to be interested in being part of a merger. It has publicly endorsed airline consolidation and was involved in merger talks with United in April.
On the other hand, American Airlines appears more hesitant about growing through mergers. It claims to have no philosophical objection to mergers, but points out that consolidation is not alone the cure for the airline industrys problems.
Currently American has not identified any potential attractive merger partners. High operating costs, significant debt, and poor labor relations make it difficult for American today to pursue mergers.
American is focusing on what it calls its corner-posts strategy that stresses the importance of American maintaining and increasing its market share in the countrys six largest travel markets: Chicago, Dallas/Fort Worth, Los Angeles, Miami, New York City, and Washington D.C.
As to what the future will bring, beware of those who protest too much (i.e., claim little interest in mergers). Their positions could change at a moments notice.
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