The potential impact of another major airline merger

6:53 AM, Feb 15, 2013   |    comments
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American Airlines planes (Photo: Getty Images)

SACRAMENTO -  US Airways and American Airlines are set to merge in a blockbuster $11-billion dollar deal that would create the largest airline in the world.

US Airways has been set on acquiring American Airlines ever since American filed for bankruptcy. But will another merger be good or bad for the average traveler?

CNN Money spoke with travel industry analysts who predicted passengers would likely experience travel disruptions should the merger go through.  These disruptions include everything from lost luggage to flight delays which is typical in the short-term when airlines merge.

In the long-term, fliers worry a mega carrier, could start charging a mega fare due to the reduction in competing airlines.

However, in the most recent mergers, fares have not spiked. They have inched up less than two percent per year over the last decade. And most experts don't expect this deal to trigger a surge in ticket prices.

According to CNN Money, a US Airways - American Airlines merger could launch the new airline into the number one spot in terms of passenger traffic.

The three major unions at American Airlines pushed for the merger because their members were unhappy with the contract concessions and job cuts that American management was demanding.

The deal still hinges upon the approval of the bankruptcy court and federal regulators; a process that will take months to complete.


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