Comments on: Airline mergers are not good news for consumers http://www.travel-rants.com/2008/11/01/airline-mergers-are-not-good-news-for-consumers/ Sun, 29 Jan 2012 01:52:48 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Kevin May http://www.travel-rants.com/2008/11/01/airline-mergers-are-not-good-news-for-consumers/#comment-129873 Kevin May Mon, 03 Nov 2008 20:53:05 +0000 http://www.travel-rants.com/?p=2217#comment-129873 As i've said on here before, Darren, it's a natural correction in the market. It's like someone picks up the industry and gives it a big shake - some things survive, those that aren't hanging on enough will fall by the wayside. Consumers, generally, have had it very good for a ling time in terms of prices, especially with flights, where routes along the Long Tail have sprung up. It is worth remembering that consumers still managed to take a holiday before routes from, for example, Tyne-Tees to La Rochelle materialised for (primarily) second homeowners. However, you say that airline mergers will not be good for consumers. Not sure i understand the economics of why you say that. If a merger means that two airlines which are inefficient individually and on the verge of collapse but then come together, make savings and ultimately survive, then i suspect that is A Good Thing for consumers. As i’ve said on here before, Darren, it’s a natural correction in the market.

It’s like someone picks up the industry and gives it a big shake – some things survive, those that aren’t hanging on enough will fall by the wayside.

Consumers, generally, have had it very good for a ling time in terms of prices, especially with flights, where routes along the Long Tail have sprung up. It is worth remembering that consumers still managed to take a holiday before routes from, for example, Tyne-Tees to La Rochelle materialised for (primarily) second homeowners.

However, you say that airline mergers will not be good for consumers. Not sure i understand the economics of why you say that.

If a merger means that two airlines which are inefficient individually and on the verge of collapse but then come together, make savings and ultimately survive, then i suspect that is A Good Thing for consumers.

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]]> By: Nick http://www.travel-rants.com/2008/11/01/airline-mergers-are-not-good-news-for-consumers/#comment-129833 Nick Mon, 03 Nov 2008 12:27:08 +0000 http://www.travel-rants.com/?p=2217#comment-129833 Darren Same queston is asked every 10 - 15 years..... so I am guessing like the last 4 times "good times will come round again" Darren

Same queston is asked every 10 – 15 years….. so I am guessing like the last 4 times “good times will come round again”

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]]> By: Darren Cronian http://www.travel-rants.com/2008/11/01/airline-mergers-are-not-good-news-for-consumers/#comment-129761 Darren Cronian Mon, 03 Nov 2008 01:13:56 +0000 http://www.travel-rants.com/?p=2217#comment-129761 @ Andy Good point. Do you think we will see 'good times' again though? @ Andy

Good point. Do you think we will see ‘good times’ again though?

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]]> By: Andy Hayes http://www.travel-rants.com/2008/11/01/airline-mergers-are-not-good-news-for-consumers/#comment-129647 Andy Hayes Sun, 02 Nov 2008 00:19:58 +0000 http://www.travel-rants.com/?p=2217#comment-129647 Given that the airlines don't seem to be able to find a middle-ground where the industry is sustainable in good times and bad, it seems the cycle continues to ebb and flow. Consolidation will happen, consumers will loose.. then in the good times new entrants will come in with rose-coloured glasses. Consumers rejoice, enjoy the good times, then bad times come and .... Given that the airlines don’t seem to be able to find a middle-ground where the industry is sustainable in good times and bad, it seems the cycle continues to ebb and flow. Consolidation will happen, consumers will loose.. then in the good times new entrants will come in with rose-coloured glasses. Consumers rejoice, enjoy the good times, then bad times come and ….

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