|AA and US Airways merger: a curse for consumers?|
- With more capacity and opportunities for low-cost carriers such as Southwest, the hope is to maintain competition among airlines which is to protect consumers, however the challenges are:
- Keeping the prices low in remaining sectors which do not see increase in capacity for low cost carriers.
- Are the low-cost airlines prepare to milk this new space? Does this mean a consolidation of low-cost airlines to compete with the big fish, i.e., 'AA and US'? In case of such a consolidation consumers will suffer the most...
- AA is part of OneWorld Alliance and US Airways is part of the Star Alliance currently. For customers who are loyal to a particular alliance and have accumulated huge points on either of these network of alliances may face the brunt. As they have to switch to either of these alliances in future. For some customers it will be a Christmas present and for some a Halloween trick! It will be interesting how will the merger accommodate both these customers, keeping everyone happy is difficult anyways !