Low Cost Airlines Pick Up Mega Merger Route Slack

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June 16 (Bloomberg) -- Bloomberg’s Megan Hughes reviews a report on consolidation and competition among airlines as the growth of low cost carriers offer competition to major airlines made bigger by mergers. She speaks on Bloomberg Television’s “In The Loop.”

The expansion of discount carriers has filled in the gaps.

This is a report by the gao.

Congress has ordered this report be released and cover 2007 22012. it found the number of airlines providing nonstop or connecting service 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 a look at the statistics showing the reason why.

Low-cost airlines expanded quite a bit in the busiest markets.

The average number of discounters in the same pairs increased from 1.7 in 2007 to 2.3 in 2012. low-cost carriers have provided some new competition and that is keeping the number of carriers overall stable.

What about the negative c echo there were certainly a lot of negatives.

Good news for airline profits.

Consumers have seen fares up by 4%. that has been a huge revenue boost for the airlines.

Neither of those can be linked back directly to the mergers.

Even when the number of competitors and markets is constant, ma a lot of airports we still see the decline in number of flights and a number of seats that are available.

That is especially true as you get into smaller and smaller markets.

That can be attributed to airlines getting rid of redundant and see -- or redundancy.

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

One important thing to point out is the book hasn't been written yet.

One major merger was left out of this report.

It covers the five-year timeframe from 20 that from 2007 22012. it didn't include the latest airways merger back in december, which is largest carrier by traffic.

We see all this consolidation.

One other thing to point out, for those other mergers it still may be too early to say.

Our washington correspondent.

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


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