And maybe that's the fly in the ointment here. The conclusions in this "study" are offensive to anyone above a second-grade education.
Fewer Airlines Mean More Competition. Yes, another breakthrough in the New Math. According to this study, if the airline industry would only merge into just three or so mega mergers, consumers would have more choices. That's right. Fewer, bigger airlines would be better for the consumer. Like, we'd be sooo much better off without having the bother of a choice of airlines. Like, small and mid-size communities wouldn't have to worry about recruiting more airlines. There won't be any. Like, without airline competition, fares might even drop. Like, this study is direct competition to Charmin.
Don't Worry. Southwest Will Be Within Driving Distance. According to this learned document, Southwest Airlines will be the carrier that will counter-balance all these mergers. All those small and mid-size communities will just love having more of their local passengers go into the leakage column. Less worry about capital expenses for new gates and terminals and stuff like that.
Mergers Will Increase Regional Competition. The study implies that competition will increase as regional carriers start to compete "head-on as parts of a national network." Huh? Earth to Ivory Tower: that's pretty much what they do today. Oh, and they forgot to make any mention of how these mega carriers might consolidate their regional feed networks, or, what hubsite airports might be pulled down. For example, United has made no commitment regarding keeping current levels of service at small airports where today both United Express and US Airways compete. That's a critical part of the outcome of this merger. One ignored in the panting conclusions of this "study."
Mid-Size Communities Will Just Love Mergers. Again, a breakthrough. The study implies that if all these carriers merged into roughly three big airlines, they would be more competitive and give the consumer more benefits. Okay, let's take Charleston, South Carolina. Today, they have at least five airline choices to Los Angeles. The mergers hyped by this "study" would reduce that to just three. That's better? Please don't squeeze this study. Mr. Whipple will get mad.
Fewer Airlines Means More Connectivity. They say that consolidation would link cities that are not currently connected on a single carrier system. Now, that's true. Ithaca might finally get on-line double connecting service for all those consumers going to Fresno. Okay. But the trade off - not mentioned in this snow-job "study" - is that consumers in lots and lots of places like Roanoke will also find as much as 80% of their air service suddenly dominated by one airline. If the folks running this "institute" really believe that's an increase in competition, they need to be admitted to another type of institute.
Huzzah! Elmira - Osaka Service! The intellectual idiocy of this study is forever enshrined by the claim that "small and medium sized communities would benefit most since they would have more links to foreign cities after consolidation" Fact is that virtually every mid-size community that now has United or UAX service won't see diddly in anymore meaningful international connectivity. We've worked with lots of small and medium communities over they years, and we've apparently not taken notice of this pressing need for more access to Tokyo. The fact is that most of the communities involved in the United/US Airways merger already have good international access over ORD or IAD. What's again not addressed is how United might consolidate the combined route systems. Indeed, those airports that have access to both United and US Airways systems may even lose some European connectivity, depending on how United consolidates international operations between PIT, CLT, PHL and IAD, and how they consolidate UAX and US Airways Express systems.