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Will Customers Be the Excess Baggage of Airline Consolidation?
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Will Customers Be the Excess Baggage of Airline Consolidation?

Knowledge at Wharton·@HashtagPLUS·about 1 month ago
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Size matters — or does it? Airline carriers in the United States would seem to say yes. The industry has lost $60 billion in the last decade and took a big hit more recently due to a cloud of volcanic ash that grounded flights across Europe. Major airlines are looking to consolidate as a way to return to profitability amid continued struggles with high fuel prices, competition from low-cost carriers, and a limited customer pool that shriveled even more when the recession curbed travel for business and pleasure. Two years ago, Delta and Northwest merged, making Delta the nation’s largest carrier. United and US Airways recently broke off merger talks, but many believe those discussions were simply a way for United to entice Continental to come to the bargaining table — a strategy that has reportedly worked. But experts are skeptical about the “bigger is better” strategy.…

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