Has Five Years of Airline Mergers Hurt Competition?

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June 13 (Bloomberg) -- Bloomberg's Megan Hughes takes a look at the findings of the GAO's five-year study of airline competition. She speaks on Bloomberg Television's "Bottom Line." (Source: Bloomberg)

Discount carrier has filled in the gaps.

This is a report from the gao.

A report requested by congress.

It covers 2007-2000 12 am looking at the 37 most traveled routes in the united states.

The number of airlines providing nonstop or connecting service in those markets with 5% market share or more went from 4.4 in 2007 24.3 in 2012. not a lot of change when it comes to the number of competitors in major markets.

Here is the reason why.

The gao said a low-cost airline expanded quite a bit.

The average number of discounters increased from 1.7 in 2007 to 2.3 in 2012. low-cost carriers have provided more competition.

Any negatives they looked at?

There were lots of negatives for consumers.

Not necessarily attributed to the mergers.

Consumers have seen fares up by about four report 4%. airlines are getting more revenue from fees.

Up tremendously in terms of revenue from 2000 and.

Neither of those things can be attributed directly to the mergers.

One thing we are seeing that mergers may have played a role in his comedian when the number of competitors is constant, we are still seeing a decline in the number of flights and seats.

That is true as you get to smaller and smaller markets.

That can be attributed to the mergers and other factors.

Getting ready of redundancy, dealing with fuel costs and airlines trying to restrain capacity to keep those prices higher and keep the demand up.

Isn't surprising that the mergers have not made a bigger change when it comes to competition?

One merger was left out of this report.

The report covers the mergers that took place between 2007-2000 well.

-- 2012. it did not include the american -u.s. airways merger.

That was not included.

It may be too early to see the impact of some of these other mergers.

This text has been automatically generated. It may not be 100% accurate.


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