Airline Mergers and Why They Are Bad For Us

http://intheopinion.com - Since our Government will not re-regulate the airline industry, the airlines are taking matters into their own hands by merging together.

Category:

News & Politics

Tags:

• united
• continental airlines
• merger
• airline merger
• deregulation

[daconqueror101]

So what I got from this was....either the government tells me what to do or I tell myself what to do. Fantastic, you just gave the best argument for capitalism. I'll note this one down!

[comeonnow4]

Mergers are still "regulated." Delta-NW, Continental-United are prime examples of airline mergers that resulted in broader route networks and therefor greater cost efficiencies. Antitrust agencies approve airline mergers on the grounds that they have insignificant route overlap; this isn't threatening capacity it's streamlining operations. Cost savings in an unregulated system will generally get passed down in part to the consumer and force other airlines to act more competitively-Econ 101