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Tuesday, January 5, 2021

Airlines

Mergers in the offing? Link here. 

  • United and Jet Blue
  • Allegient, Frontier and Spirit could merge; 
    • these three airlines have a 3% market share, maybe a little more now since they are so domestic
    • they could be a really terrific competitor to the Big Four because they are so low cost and their so domestic and leisure focused.

Disclaimer: this is not an investment site.  Do not make any investment, financial, job, career, travel, or relationship decisions based on what you read here or think you may have read here.

The big four now includes Southwest Airlines. Pretty amazing. The other three, of course: American Airlines, Delta, and United. 

The list of "defunct" airlines in the United States is so long, wiki had to break the article into pieces.  

List of "defunct" oil companies? Wiki lists at least 82 pages.

2 comments:

  1. It's all about trying to lower competition and raise prices.

    ReplyDelete
    Replies
    1. That, of course, is generally always true.

      In this case, it's more about survival, and, in fact, if the government regulators were to prevent any proposed airline mergers,it's very possible there would be fewer competitors anyway, and an opportunity to raise prices by those airlines that do survive.

      Already to some extent, there is a trend toward regional monopolies. Flying into/out of Portland, OR, from DFW, I pretty much have two choices: American Airlines with lots of flights; and, Alaska Airlines with a very small number of flights.

      Delete

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