Fasten your seatbelts: deeper airline oligopoly ahead

With the expected announcement of a planned acquisition of Virgin America by Alaska Airlines on Monday, the United States domestic airline industry could become even more oligopolistic. Should the merger be approved, a ray of competitive sunshine will diminish for airline travelers.  Criticism of high fares, cramped seating, excessive fees, and surly staff have been a staple of air travel ever since the Obama administration permitted a series of mergers that reduced the number of major airlines in the domestic market to 4 dominant “network” airlines that connect nearly all significant passenger airports to the rest of the nation. United gobbled up Continental, American was taken over by US Airways, but with the larger carrier the surviving entity, and Delta acquired Northwest. The result has been record profits and a further deterioration in the passenger experience. Despite the cheery ads one sees, domestic coach airline travel on the so-called...(Read Full Post)