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Will AMR U.S. Air Merger Help or Hurt Passengers?

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  • Description

    FBN’s Jeff Flock on the impact of the U.S. Airways and AMR merger on air travel.

  • Duration 2:00
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And that US Airways and the parent company of American Airlines have reached an agreement to merge.

The question a lot of people have is how will this affect -- business travelers and the prices of tickets well Jeff Flock.

Has more -- on that from Chicago's O'Hare airport.

-- to talk among business travelers in airports like this when the Chicago's O'Hare this is the American terminal where they already compete pretty heavily with the united.

If you take a look at the numbers going forward it's only going to be more competition.

That combined airlines the new American combined with US Airways would have 39 billion dollars and combined revenue share for the year 2012.

That would be 2% larger than -- a set -- big competition in places like Chicago already.

The merger cost about one point two billion dollars and about a billion dollars they think they'll save in synergies.

And also the numbers impressive when you look at how big this airline will be 6700 daily flights 336.

Destinations 56 countries.

Indeed a huge merger eleven billion dollars.

The company when it's done that dwarfs the United Continental merger and also the delta northwest merger which is now five years old most companies doing pretty well.

What about the impact on prices -- people think that there might be more choices for business travelers because they'll be more competition.

But of course there may be fewer flights so maybe that.

Cuts the other way.

What about those perks that business travelers get you know American has a very good frequent flier program generally considered to be the best in the US.

Will that.

Continue forward.

American says right now it certainly will but will.

Positives of that program.

Go into the new combined airline and be better than the -- programming US Airways has now.

In terms of things like free baggage for frequent flyers we don't know about that going forward asked the question.

Didn't get a good answer.

A lot yet to be to term.

I'm Jeff Flock at --

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