Airline Competition
Impact of Proposed Mergers
In May 2000, United Airlines proposed to acquire US Airways and divest part of those assets to create a new airline to be called DC Air. More recently, American Airlines has proposed to purchase Trans World Airlines (TWA), along with certain assets from United. These proposals have raised questions about how such consolidation within the airline industry would affect competition in general and consumers in particular. Extensive research and the experience of millions of Americans underscore the benefits that have flowed to most consumers from the 1978 deregulation of the airline industry, including dramatic reductions in fares and expansion of…
