BUSINESSWEEK ONLINE : JANUARY 22, 2001 ISSUE
NEWS: ANALYSIS & COMMENTARY Airline Consolidation: Will It Help or Hurt? WHILE SOME COULD WIN BIG... AMERICAN (AMR) Achieves about the same 25% market share as beefed-up United; gains assets in East Coast cities and a hub in St. Louis. Removes TWA (TWA) as a competitor in Caribbean and transcontinental markets. UNITED (UAL) Improves chances of winning antitrust approval for its $11.6 billion deal for US Airways (U); gets about $1.5 billion from American to offset cost of its merger. LABOR Some 20,000 TWA workers will keep their jobs. With fewer carriers, labor has more clout as it gains potential for more disruption. ...OTHERS MAY LOSE OUT THE PAYING PUBLIC Fewer carriers mean fewer choices and may mean higher fares. Problems integrating the megamergers could also create big travel snafus. LOW-COST AIRLINES The big guys will now have even more muscle to drive out startups by tying up business through corporate-discount programs and by offering more flights and better frequent-flyer programs. DELTA AIRLINES To keep pace, the No. 3 carrier may have to do its own deal. But Northwest (NWAC) still has power to veto a deal for Delta's most logical target, Continental. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS The Ever-Shrinking Skies TABLE: Airline Consolidation: Will It Help or Hurt? VIDEO: Interview with American Airlines CEO Donald J. Carty Why Carl Icahn Wants to Spoil American's Deal INTERACT E-Mail to Business Week Online

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