rewarding travel

Implications of a US Airways-Delta merger

Regarding the possible merger of US Airways and Delta: From the standpoint of frequent flyers, I’m all for anything that will protect the hard-earned miles members of both airlines’ frequent flyer programs have earned. Surely you don’t believe that if one of these airlines doesn’t make it, another will step in and gladly offer free flights to passengers who have never flown their airline?

The combined company will face considerable competition across its expanded network, including most of its hubs and all along the East Coast, where low-cost carriers like JetBlue and AirTran have had such an impact on fares and available flights. In what I’ve read, 81 percent of the combined company’s passengers would have low-cost carrier options, and the percentage could very well grow with new carriers being funded such as Spirit, JetBlue and AirTran. The merger could result in the combined company having about 20 percent share of the domestic market, far below the threshold that should worry antitrust regulators – or the flying public.

Will it be easy? No. Will there be some problems not anticipated? Sure. Will there be some passengers who find the merger less advantages? Yes. But the industry remains fragile – just one terrorist act away from financial ruin for many airlines – and if this merger can do anything to preserve the future for business travelers and their miles, then I would not be one opposed. As I’ve said before, why would any of us think we’re smart enough to stand in the way of open business markets? I say, let the industry determine the outcome of this merger, not the peanut gallery of which I may be a member.

It’s obvious to any “million miler” that the potential merger of these two airlines holds great promise for the airline industry and every one of its many constituents. It should also obvious to any “million miler” that losing your miles to a folded airlines is not a promise kept.