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.
