After reading this article, I have to say that I disagree with this report. They mention the benefits of the mergers to consumers such as onetime performance, less lost baggage etc. I can see how in the short term that might be a benefit or “soft benefit” but longer term that will change. Airlines would be making a huge mistake by increasing fares right now more than the 2% we are seeing. You will see increase in the fees or ancillary revenues such as baggage, inflight and more. As load factors increase and capacity returns due to the consolidation, fares will begin to rise again and I think we will see them increase at higher rates. Once all of these mergers are complete we will be left with 4 airlines controlling 80% of the domestic market. I think this is simple supply and demand. The major airlines will control all of it. We will have limited choices so with that will return increases in the base fares. The airlines will continue to increase or add fees around the core asset of the seat. We will also see Loyalty programs change. I see devaluation of the point or mile and it will be much harder to use for consumers to redeem. We will see a totally different picture in the very near future and sorry to say it wont be good for consumers.
More than 50% of the growth in global traffic will come from Asia Pacific and 49% of all passenger traffic globally will be within Asia Pacific or between the region and the rest of the world. – See more at:
Boston Consulting Group
What is left?? Soon we will pay for the seatbelt per side. “Oh I’m sorry did you want both sides of the seatbelt”. Next the oxygen mask will drop but for a small fee the oxygen will flow. We only accept major credit cards and for those using loyalty co brand cards, you will receive an additional 5 minutes at no charge.