Monopoly in the Skies
This comes partially in competitive reaction to Delta swallowing up Northwest Airlines in 2008, itself becoming, briefly, the world’s number-one carrier in both market value and passengers.
All this jockeying is not new. Recently, Southwest tried to purchase Frontier before Republic ultimately took it over and United was actually courting US Airways several weeks ago even as its talks got started with Continental.
When Congress deregulated airlines in 1978, the central premise was to expand competition, to offer consumers more choices and to lower prices. On all accounts, these have been exposed as complete myths and distortions. Today, thirty years after the deregulation of airlines, there is a virtual monopoly in the skies and steadily increasing fares.
The major airlines view mergers, according to a dispassionate January 10, 2008 Reuters dispatch on the eve of the then-impending Delta and Northwest merger, “as a way to stabilize the industry by allowing carriers to cut costs, reduce capacity, and raise fares.” Nothing has changed.
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