Balance and Alliance

The US airline industry was nearing the completion of a major transformation that would allow it to become more attractive to the investment community and more stable for its employees and other stakeholders. That plan, however, may be in jeopardy now that the US Dept. of Justice has brought a suit,...

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Bibliographic Details
Published inAir Transport World Vol. 50; no. 11; p. 70
Main Author Friedenzohn, Daniel
Format Trade Publication Article
LanguageEnglish
Published Cleveland Informa 01.11.2013
Subjects
Acquisitions & mergers
Agreements
Air fares
Airline code sharing
Airline industry
Airlines
Airports
Alliances
Bankruptcy
Bankruptcy reorganization
Business conditions
Business models
Competition
Deregulation
Domestic markets
Federal regulation
United States > US
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Summary:The US airline industry was nearing the completion of a major transformation that would allow it to become more attractive to the investment community and more stable for its employees and other stakeholders. That plan, however, may be in jeopardy now that the US Dept. of Justice has brought a suit, to be heard in court Nov. 25, to block the merger between American Airlines and US Airways. The Civil Aeronautics Board relinquished control over domestic routes in 1981, and airfares two years later. US airline deregulation, as predicted by many economists during the 1970s, became a laboratory for a countless number of startup carriers seeking to become the next big airline. The policy has largely favored consumers at the expense of the carriers on which they fly. The financial challenges that have plagued the US industry during 30-plus years of deregulation can certainly lead one to conclude that the industry may be healthier with fewer network carriers.
ISSN:0002-2543