American, US Airways may merge to form giant airline
- December 15, 2012
- Jan Brueckner, economics professor and department chair, is quoted in the Los Angeles Times, News.gnom.es.com, Chicago Tribune and TradingCharts December 15, 2012
From the LA Times:
By cutting competition, a merger between American and US Airways may push up fares but not significantly, said UC Irvine Professor Jan Brueckner, who coauthored a report on the effects of airline mergers. In the end, he said, cost savings created by the merger would more than make up for the higher fares. "This impact is likely to be dwarfed by the network benefits enjoyed by passengers and by the cost synergies of the merger, some of which will eventually be passed on to consumers," Brueckner said. Whatever those challenges, frequent fliers don't seem too worried. Mitch Smith, a frequent flier from Minnesota, said he isn't expecting higher fares. "There will still be United, Delta and Southwest to compete with," he said.
For the full story, please visit http://www.latimes.com/business/la-fi-american-usairways-merger-20121215....