SAN LUIS OBISPO COUNTY, Calif- American Airlines and US Airways are merging, in an eleven billion dollar deal, creating the world's largest airline. It will be run by the CEO's of US Airways.
The new merger with American Airlines and US Airways can affect three central coast airports, Santa Barbara, San Luis Obispo and Monterey. Michael Manchak, the President of Economic Vitality Corp. said there are several ways this merger can play out. "Each one of those airports still talk about having too few flights one can argue that less competition won't bring more flights," said Michael Manchak, President of the EVC.
Less competition because there are less major airlines. On the other hand, both companies have multiple partnerships with other airlines so prices could drop. "The more airlines you have in a particular network the more clout there is in getting better airfares," said Travel Consultant Maureen Cormiea.
Doug Parker, the CEO of US Airways said he expects to keep all hubs and destinations served by both airlines. Some consumer advocates worry this may not be the case.
"There are consumer advocates that are very concerned that with less competition there are three issues that we are faced with potentially, lack of jobs, less competition and also higher prices," said Manchak.
The merger still faces regulatory obstacles and it still needs to be approved by the Department of Transportation and Justice Department. If the deal passes American Airlines and US Airways expect the merge to be complete by September.
Saturday, May 18 2013 11:14 PM EDT2013-05-19 03:14:07 GMT
BRIDGEPORT, CT -- Federal investigators are in Connecticut inspecting the scene of a commuter train crash. Officials said it could take days before the busy section of track reopens. During the FridayMore >>
Federal investigators are in Connecticut inspecting the scene of a commuter train crash. Officials said it could take days before the busy section of track reopens.More >>
Saturday, May 18 2013 11:08 PM EDT2013-05-19 03:08:19 GMT
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According to the Associated Press, a car drove into a group of hikers at a parade in Damascus, a small Virginia town.More >>
Saturday, May 18 2013 9:08 PM EDT2013-05-19 01:08:42 GMT
SANTA MARIA, Calif. -- The 4-H kids program trains future leaders in agriculture and community service across the Santa Barbara County but it is in danger of being cut altogether. The 4H program receivesMore >>
The 4H program receives $143,000 from the county which is scheduled to decide if it will continue or cut the funding this June 10th.More >>
Saturday, May 18 2013 9:06 PM EDT2013-05-19 01:06:55 GMT
PISMO BEACH, Calif. -- Some like to show off vintage cars while others in Pismo Beach like to show off vintage trailers. The Pismo Beach community got a blast from the past as more than 300 vintage trailersMore >>
The Pismo Beach community got a blast from the past as more than 300 vintage trailers rolled through Pismo Coast Village this weekend. More >>
Saturday, May 18 2013 11:15 AM EDT2013-05-18 15:15:59 GMT
LOMPOC, Calif. - The Lompoc Fire Department held its lottery on Friday morning for local groups to sell "safe and sane" fireworks for its upcoming Fourth of July celebration. Fire officials held a blindMore >>
LOMPOC, Calif. - The Lompoc Fire Department held its lottery on Friday morning for local groups to sell "safe and sane" fireworks for its upcoming Fourth of July celebration.More >>