Can Union and Consumer Groups Stop the Airline Mergers? (best, airlines, France)

[fresh_greenery]

The media is reporting that Northwest and Delta Airlines are going to merge. Not so fast! It has to be approved by the government anti trust regulators and get past the unions. I read the unions at Northwest Airlines are going to pull out all stops to try to stop the merger. The results of these mergers are not going to help anyone except the investment banks and a few high level executives. What can be done to stop these destructive Airline Mergers?

[sean98125]

Let the airlines go out of business because they can't sustain their current business model?

[graceC]

And let foreign airlines do business in domestic US market. Once the public get a taste of these high quality and perenial international award winning airlines, US domestic airlines will have no choice but to pull their acts together or let these foreign airlines take over their profits.

[tande1n5]

Originally Posted by graceC

And let foreign airlines do business in domestic US market. Once the public get a taste of these high quality and perenial international award winning airlines, US domestic airlines will have no choice but to pull their acts together or let these foreign airlines take over their profits.

We'll have to repeal a few laws for that first. What you just described is currently illegal.




As for the unions, the respective pilot's unions have come to their separate ok's, so, even with many obstacles and other unions in the way (as well as some specifics about the pilot's union) the wheels have begin to turn.

I'm all for competition, and completely agree that the consumer will start paying more as airlines consolidate, so they should be somewhat annoyed... but what the consumer doesn't always realize is that current prices and supply of seats are NOT at an economic equilibrium, so as much as the possibility of high prices can be loathed, they're somewhat inevitable even to get to a simple equilibrium.

[11thHour]

Originally Posted by graceC

And let foreign airlines do business in domestic US market. Once the public get a taste of these high quality and perenial international award winning airlines, US domestic airlines will have no choice but to pull their acts together or let these foreign airlines take over their profits.

The problem here is that the public won't want to pay the higher costs associated with that service. They want caviar, but only if it's on special at wal-mart. Can't have it both ways, especially at todays fuel prices. Plus as tande said it's illegal.

Profit margins at passenger airlines are awfully thin, and maybe this consolidation will allow the industry to remedy that. Operating costs of airlines are tremendous, and the fiercely competitive nature made it hard for any one airline to raise prices as needed for fuel (the single biggest cost of running an airline). Mergers will give them more power to do so, however. The unions have a lot of hard work ahead of them, and it may prove to be very painful for them short term, but I think most folks realize in the long term consolidation will strengthen the industry, and thus will try their best to go along with it and work it out.

[graceC]

Originally Posted by 11thHour

The problem here is that the public won't want to pay the higher costs associated with that service. They want caviar, but only if it's on special at wal-mart. Can't have it both ways, especially at todays fuel prices. Plus as tande said it's illegal.

Profit margins at passenger airlines are awfully thin, and maybe this consolidation will allow the industry to remedy that. Operating costs of airlines are tremendous, and the fiercely competitive nature made it hard for any one airline to raise prices as needed for fuel (the single biggest cost of running an airline). Mergers will give them more power to do so, however. The unions have a lot of hard work ahead of them, and it may prove to be very painful for them short term, but I think most folks realize in the long term consolidation will strengthen the industry, and thus will try their best to go along with it and work it out.

Yeah, I know it's illegal, but one can wish It makes me wonder what happened to free-trade that this country is so supportive of. Maybe it should be re-classify as 'selected trade' instead.

Regarding price = quality. Not always true. I travel abroad every year and it's often more expensive to travel abroad with US based airlines, while I know I'll be getting crappy services at the same time. Thank goodness at least customers have choices when travelling abroad!

[Dd714]

Hate to say it if you work in airlines, but the companies need to bust the unions. I'm not just talking about expense, but quality of service. Baggage handlers taking 45 minutes to unload a plane and get bags to the terminal, 50 year old flight attendants with an attitude that know they can't get fired, and pilots making union guaranteed $200k a year to fly from Toledo to Cincinatti every day.
Consolidation is one step, but they won't survive until they bust the unions.

Foreign airlines - well not so fast. They are good on long overseas stretches, but you ever take a inter-European flight? Air France? Swiss Air? Not so good. No first class, not really, probably less service then you get domestically. Dirty planes, same scheduling problems. Most of the foreign airlines are state subsidized anyways.

[tande1n5]

Originally Posted by Dd714

pilots making union guaranteed $200k a year to fly from Toledo to Cincinatti every day.

The few pilots making 200k these days aren't the ones flying from Toledo to CVG... let alone once per day... those days have been over for years. The RJ pilots doing those little hops are doing a legally maximum duty day's worth for anywhere in the 20k's to maybe 45-50k for the most senior captains.