This transcript is automatically generated
Tonight a potential merger in the works that could affect you -- your travel plans US Airways considering.
Eating up the bankrupt American Airlines in our next guest says this move could cost you big time joining me now -- -- CEO affair compared dot com.
And Rick thanks for joining us by phone I know you get a bad storm down there so we can't have you on camera.
But how likely is it that this merger -- take place.
You know I think if you ask most airline analyst -- probably say it's about 75% deal.
Living in the Dallas area known the pride of their home base here in doubt I think it's more of a point but it's actually -- -- or how would what would -- mean for the competition what would it make the industry look like.
Well what you would basically have his -- -- airlines united delta American and basically the news southwest AirTran.
And you know with with those poor basically you're down from eight over the last forty years -- not good this is not it's urgent Britain -- Well let's talk about what it would -- -- I've got to think that prices are gonna rise fees are gonna rise all the bad things that consumers don't want NC.
Sure if you look back -- sort of past mergers what happens if you airlines merge they start to cut back.
Either route for the cut back on frequencies and airport and that means you have -- -- you're talking about almost 90%.
Load factor which -- 90% of all plane being -- basically mean they're completely pull -- that there's no.
Reason to discount so basically.
We're gonna see higher pairs them and probably.
You know less flight from the morning.
If he said it's not at all certain that this merger will occur.
But that's really all we've seen in the industry over the last few years you expect more consolidation.
Yeah I think well you know it's hard to say there's several airlines some of them do -- done pretty well airline -- figured out a new business model.
If you -- an airline executive if they could make money yet body -- barrel oil.
You know or five years ago they would -- -- no they intended to airlines be.
That we all or or.
I'm not so fond of today and they've totally reinvented themselves but the one problem I have with -- is you know are they getting too big to fail -- I mean.
If we have another recession you know -- gonna have bail -- airline.
Wow well that's a frightening thought -- -- the price tag on something like that but.
That it would not cheap but it won't be a little cheaper than auto industry and it.
Well goodness thanks for bringing that up Rick appreciate your time and I hope that storms 0% thank you.