Aviation perspectives

January 2014
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Aviation perspectives

At a glance

What impact do commercial airline mega-mergers have on fares, operations, and the customer experience? Our latest report includes analyses of operational improvements, fares, and the customer experience, with a discussion of the implications of mega-mergers on the future of the airline industry.

The impact of mega-mergers: A new foundation for the US airline industry

The fourth and likely last airline mega-merger in the US was recently approved. Once the merger integration is complete, the largest four airlines and their regional partners will control more than 80 percent of US commercial airline traffic.

Key points from airline industry mergers & acquisitions

  • While this certainly is an historic level of consolidation, there remain other sizeable airlines serving the US domestic market. In addition to the largest four airlines and seven regionals that serve them, there are seven other US passenger airlines that each earned more than $500 million in revenue last year.
  • More than 30 airlines are on pace to carry more than 10,000 passengers each on the top 1000 US domestic routes in 2013.

In this latest edition of Airline Perspectives, we refreshed our previous analysis on the impact of US airline mega-mergers on fares. We also included new analyses on operational improvements and the customer experience as well as a discussion of the implications of mega-mergers on the future of the airline industry.

Other editions of Aviation Perspectives