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The fallout of the merger between American Airlines (AAMRQ.PK) and US Airways (LCC +2.2%) on...

The fallout of the merger between American Airlines (AAMRQ.PK) and US Airways (LCC +2.2%) on airline ticket prices is starting to be felt as fares on several major routes jump over 40%. Though routes where the two merging carriers dominate will see the biggest fare jumps, a ripple effect on pricing could be felt in the entire sector.
Comments (12)
  • jackooo
    , contributor
    Comments (1618) | Send Message
     
    What ever happened to anti-trust laws?
    If there are not enough airlines getting you there then they can milk the system.
    11 Apr 2013, 02:26 PM Reply Like
  • markcc
    , contributor
    Comments (1381) | Send Message
     
    This article is way too vague to have value. It does not identify the routes affected, the competition on those routes. It does not consider the effect of a healthy airline industry in adding flights on highly desirable routes connecting major city pairs. If this article is right, there is no impact on the number of people flying, (not likely) and other competitors are going to stay away (also not likely). If it is right, you want to buy all the airline stocks you can!
    11 Apr 2013, 02:27 PM Reply Like
  • Drew Robertson
    , contributor
    Comments (347) | Send Message
     
    Mark I would invite you to check the fares to CVG from whereever you fly from. Skyway robbery. And this is after Delta had an airport built for them with taxpayer $$.
    11 Apr 2013, 02:33 PM Reply Like
  • markcc
    , contributor
    Comments (1381) | Send Message
     
    CVG is a Delta hub, this article refers to American and US Airways. I fly a lot and know, if possible, not to fly directly to CVG when I go to the area.
    What is the real investment advice in such an unsubstantiated article, or is somebody just trying to boost Airline stocks today?
    11 Apr 2013, 04:26 PM Reply Like
  • 166649
    , contributor
    Comments (375) | Send Message
     
    They will feel a ripple how? higher revenues or loss of revenues?
    11 Apr 2013, 02:37 PM Reply Like
  • youngman442002
    , contributor
    Comments (5131) | Send Message
     
    someday they will charge you extra for a seat on an airline...I don´t know what I am paying for now..
    11 Apr 2013, 02:44 PM Reply Like
  • Mattdmmk
    , contributor
    Comments (3) | Send Message
     
    The airlines lost money for years, to many seats to few passengers. Now things are moving towards normal everyone wants to go back during the fare wars and fly from NYC to LA for 200 bucks, get a meal and free drinks. Those days are gone. If you don'tlike the price DRIVE and spend 3 days bitching about the weather , traffic and cost of gas. Not to mention the 3 days stuck in a car with 2 crying kids. You don't work for free so don't expect the airlines too.
    11 Apr 2013, 03:32 PM Reply Like
  • Drew Robertson
    , contributor
    Comments (347) | Send Message
     
    Matt: Profitability and Competition don't really get along too well in the transportation business. That's why the airlines were regulated until Jimmy Carter came along with his free market hocus pocus. Let's agree that the airline business is not free enterprise.
    11 Apr 2013, 04:18 PM Reply Like
  • markcc
    , contributor
    Comments (1381) | Send Message
     
    Drew: On one of your comments, you talk about how much fares are going up, on the other you talk about the impossibility of the industry making money as a free enterprise. Just a reminder that almost all airlines in the US are profitable right now. Stock prices are up, and things look good with a reduced number of airlines. Are you positive or negative on the industry as an investment?
    11 Apr 2013, 04:56 PM Reply Like
  • Drew Robertson
    , contributor
    Comments (347) | Send Message
     
    Now that's a good question. As an investor I'd have to say thumbs up. As an infrequent flier, them's the breaks if you want to fly xcountry every weekend. I've been long railroads (UNP,CSX,xBNI) forever so I know how oligopolies work.

     

    Word of caution: airline passengers bitch a lot more to their congressmen than 110-ton coal cars.
    11 Apr 2013, 06:43 PM Reply Like
  • braniff1
    , contributor
    Comments (10) | Send Message
     
    my goodness, airlines making a profit, ridiculous..we'll not have any of that...why duke power owns charlotte nc and if you can't afford there prices then i suggest you get self a obama windmill....so you want airlines to give you free drinks, pillows, blankets, magazines, and kiss your rosey, well them days is over with partner...how about you asking exxon gas to give you one free galleon of gas for each one purchased..why not same thing...look at this, if you cannot afford a hubs high prices then drive someplace like greensboro and purchase your ticket for less, this is a example but you will get your ticket for less in greensboro, still connect in charlotte, and if you smart have your wife drive you to gso and pick you up in charlotte on the way back...lotsa ways to play the system but do not expect the airlines to keep giving it away, hey believe this or not the airlines have employees to pay and we do not work for minimum...
    11 Apr 2013, 05:29 PM Reply Like
  • braniff1
    , contributor
    Comments (10) | Send Message
     
    retired airline employee
    11 Apr 2013, 05:30 PM Reply Like
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