After months of rumors and speculation, American Airlines and US Airways officially declared yesterday that the two carriers plan to merge into the country’s largest airline.
It’s the latest of several merger announcements over the past few years in an airline industry that continues to contract. Delta and Northwest joined forces in 2008, and United absorbed Continental in 2010. After American Airlines and US Airways become a single carrier, to be named American, the U.S. will be left with only three major legacy carriers. And don’t forget Southwest Airlines, which is currently in the process of assimilating AirTran’s flights and services after their merger in 2011.
Airline mergers typically lead to less competition, higher fares and plenty of glitches as the carriers try to integrate two different operating systems. (Remember the computer problems that stranded some United fliers last year?) Elite fliers will also want to keep a close eye on their miles to be sure they’re credited correctly when the two programs are integrated.
How do you feel about the American/US Airways merger — excited? Worried? Indifferent? Post your thoughts in the comments below.
– written by Sarah Schlichter