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Dec14
Airline Merging Mania, Be Forewarned

With all the merger rumors squirling around and other airlines going private it is difficult to remember what the industry use to be like just 10 years ago.  The last 6 years have been some of the most difficult for the airlines, especially the legacy carriers (American, Continental, Delta, United, US Airways).  Years of losses in the billions, thousands of layoffs, and an industry is just barely recovering now. 

 

I certainly hope that one airline in particular learned their lesson when they merged with another airline back in 2001.  They maybe have eliminated one of their competitors but at what cost?  Thousands of employees laid off, billions in debt gained, all for what?  

American is rumored to be looking into merging with Northwest Airlines.  They want those Asian routes bad.  But need I remind American Airlines what happend when you wanted to take out the competition in 2001?  Your awe inspiring tv ads did little to cover up what really was going on behind the scenes, a blood bath of a merger.  Hatred still runs in the veins of many travellers in the once hub city of St. Louis.  I warn all those airlines out there be careful of what you want to merge with.   


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