NEW YORK (TheBlaze/AP) — While American Airlines and US Airways announced plans to merge Thursday, it will be several months — if not years — before passengers see any significant impact.
Passengers with existing tickets on American or US Airways – and members of both frequent flier programs — shouldn’t fret. No changes will come anytime soon.
American’s parent company, AMR Corp., is still under bankruptcy protection and will need the court to approve the deal. US Airways shareholders will also have to vote for a merger. Then the Department of Transportation and the Justice Department must sign off. Finally, once a deal closes, the new company could operate two separate airlines for a number of years.
When the airlines finally do merge, here’s what passengers can expect:
AIRFARE
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During the past five years, the airline industry has seen the combinations of Delta with Northwest, United with Continental, and Southwest Airlines Co. with AirTran. Further consolidation is likely to raise airfares. The price of a domestic round-trip flight has climbed more than 11 percent since 2009, when adjusted for inflation, according to the Bureau of Transportation Statistics.
The merger will give a combined American and US Airways Group Inc. the ability to increase fares. United, Delta, and Southwest would be likely to follow. Although it could also pave the way for further expansion by discount airlines such as Spirit Airlines Inc. and Allegiant Travel Co.
FREQUENT FLIER MILES
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Your miles will be safe. After the merger is approved, the two airlines will likely combine the miles into one program and elite status from one airline will likely be honored on the other. That puts the occasional traveler closer to rewards.
The merged carrier will continue American’s participation in the OneWorld alliance, which was founded by American, British Airways, Cathay Pacific and Qantas. Today, it has 12 airlines including Finnair, Royal Jordanian and Japan Airlines. US Airways will leave the Star Alliance, which includes rival United Airlines, Lufthansa, Air Canada and 24 other airlines. Alliances allow passengers to earn and redeem miles on partner airlines.
DESTINATIONS
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A key reason for merging is to link both airlines’ networks, creating a system on par with Delta Air Lines and United, part of United Continental Holdings Inc.
There is little overlap between the two airlines’ existing routes. The combined carrier will offer more than 6,700 daily flights to 336 destinations in 56 countries, making it more attractive to companies seeking to fly employees around the globe with few connections.
US Airways passengers will gain access to American’s international destinations, particularly London and Latin America. American’s passengers will be able to better connect to smaller U.S. cities that US Airways serves.
The combined carrier will have considerable presence in New York, Philadelphia, Washington, Charlotte, N.C., Miami, Chicago, Dallas, Phoenix and Los Angeles. It is unclear how many of those cities will keep their levels of service. In past mergers, airlines have promised not to close any hubs but have gone ahead and dramatically reduced service in once-key cities.
PASSENGER CONFUSION
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The merger of two airlines often means confusion and hassle for customers. Which terminal or ticket counter do they go to for check in? If there is a problem with a ticket, which company should they call? For a while, United and Continental were issuing two confirmation numbers for each ticket so either airline’s staff could make changes. Problems with the integration of their frequent flier programs angered many loyal road warriors and computer glitches caused repeated flight delays. It could be months, if not years, until all American and US Airways planes get a uniform paint job.
“These things are never as seamless as they seem,” said Thomas Lawton, a professor of business administration at Dartmouth College’s Tuck School of business. “There will probably be some initial teething problems.”
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Featured image Associated Press.
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AKSOURDOUGH
Feb. 16, 2013 at 1:04pmI have never flown American Air but one of the worst flying experiences I ever had was a round trip flight from Anchorage , Alaska to Wilmington, NC. on US Air. Not only were the flights horrible, (rude flight attendants, lousy service) I thought for a few seconds that we had actually crashed on the landing in Phoenix which arrived after my connecting flight to Alaska was supposed to have left. The Terminal experiences were no better and I vowed never to fly US air again. Now between experiences like that and the TSA,. flying is almost out of the question. I said almost because being in Alaska we don’t have many choices. Driving to the ” Lower Forty eight” Takes a lot of time and we have to go through a foreign country ( Canada ) as well which now requires a passport. A couple of years ago I watched a TSA officer pat down a four year old girl. That sickening sight was enough to make me rethink flying anywhere.
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G-WHIZ
Feb. 16, 2013 at 9:35amThe “merger” will neccesssarilly kill thousands of “duplicate” jobs,,,can you say “consollidation”?? This will happen in each area they fly in and out of, in each state of the U.S.A. AND THE WORLD! Oh, and they will neccesssarily be NOW TOO-BIG T’A FAIL and the FED/GOVT will neccesssarily haveto do a FEDERAL-TAKEOVER and BAILOUT with thousands of hidden laws and fines and regulations which congress will never read before passing!! And NONE of these “hidden” will have anything to do with the airlines!!
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RabbiDRJerkins
Feb. 15, 2013 at 1:41pmShalom,
I have traveled by air exactly once since the TSA began its complimentary molestation services for all airline passengers (except muslims, that would be profiling and a volation of their rights).
Never again.
If the airlines want to improve their bottom line, they might want to consider providing a service that their customers do not dread receiving.
When the TSA is removed from the airports and airlines, their business can and will flourish as the airlines begin to provide services that customers would actually WANT to pay for instead of relying on income from those who feel that they have no other choice. Until then, nothing that they do will make the slightest difference; they can merge, sell, add new lines, buy new planes… but in the end, it will be like trying to fix the US government by any means other than armed revolution; it is doomed to fail. The only question is: How much longer will the failures have to continue to mount up before the ones involved are willing to look at the uncomfortable, but only functional solution?
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JoeBloe
Feb. 16, 2013 at 10:51amYour point is well taken but, to be fair, bot the airlines and the airport authorities themselves resisted the implementation of the TSA.. The knew what would happen – what we got – and they argued it should be handled by the airports themselves. Several airports have threatened to kick the TSA out (some may have actually done so by now) but that has been swiftly countered by the FAA threatening to refuse any plane to land at that airport.
The Federal government is running this show and the airlines & airport authorities are largely being victimized by it.
Continued, vocal pressure by the traveling public to dump the TSA is the first step in improving air travel.
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FlagWavingPatriot
Feb. 15, 2013 at 1:26pmFly? Who still flies?
I flew about a thousand times for work over the years. I quit flying when the pedophiles and gestapo took over airline security. You’re more likely to find a bacon vender at the Hajj than me in an airport.
If I can’t drive or boat there, I’m not going.
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chips1
Feb. 15, 2013 at 2:04pmI won’t even travel outside the U.S. like New York or Chicago.
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hauschild
Feb. 15, 2013 at 1:18pmI continue to find it extraordinary that ANY airline can make it go these days. It’s truly amazing.
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Cavallo
Feb. 15, 2013 at 1:17pmSo, less of an option to use when, not if, you get poor Unionized service. Flying has seriously lost its luster in the last decade. It’s invasive, inefficient, inconvenient, rude, dirty, and inconsiderate.
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