When they announce their mergers, airlines usually say there will be more options than ever. But in reality, one of the first things merged airlines do is eliminate non-profitable routes.
Most recently, United Airlines dropped Cleveland as a hub. That translated into a 60 percent reduction in air service, which is huge. But it’s not a surprise.
We predicted this in 2010 when United first merged with Continental.
Back in 2008, Delta and Northwest merged, and last year, we saw Memphis dropped as a hub. The city used to be a Northwest hub.
If you recall, Delta even denied that it would close any hubs during Congressional hearings on the deal. But the fact is, Delta is based in Atlanta, which is less than 400 miles from Memphis.
Any way you look at it, it’s not good news for travelers.
The law of supply and demand means there are more people competing for fewer seats, which means airline fares are more than likely going up, up, and away.
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