Airline consolidation may be good for the companies merging, but it’s bad news for passengers, as it means less competition, fewer choices and reduced service to rural communities, according to a report from The Eno Center for Transportation.
The Washington, D.C.-based transportation think tank said airline mergers lead to a 15 percent increase in traffic at large hub airports, while traffic declined at small- and medium-sized airports.
“Airlines typically concentrate their traffic in a few large airports because of the efficiency advantages of connecting passengers,” the report said. “Passengers using small and medium hub airports could be worse off as airlines have reduced service in several smaller markets.”
Consolidation also means less competition, especially for new companies hoping to enter the market. And that’s bad news for ticket prices, too.
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