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TODAY   |  August 14, 2013

Airline merger could mean ‘higher fees, less service’

Airline mega-mergers are becoming common, but what does that mean for consumers? Mark Orwoll, international editor for Travel and Leisure magazine explains how the US Airways and American Airlines merger could affect you.

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This content comes from Closed Captioning that was broadcast along with this program.

>>> editor for travel and leisure magazine . good morning to you.

>> good morning.

>> first question in my head is these other mega mergers have gone through in recent years. what's different about this one?

>> according to the department of justice there's thousands of routes impacted and that could mean higher fees and less service for the average american travelers.

>> so these airlines share the route so the competition would be reduced.

>> and if you don't have as much competition there's no reason to keep the prices low. you can save a lot of money now because of the competition.

>> when you look back at some of these mega mergers, what's the bottom line on prices? did they go up?

>> they have. over the last five or six years they have gone up. how much of that is attributed to mergers i couldn't tell you but fares continue to go up with mergers.

>> if you take an example of u.s. airways and american right there could be differences that would evaporate if the merger went through.

>> if you were to fly on u.s. air as opposed to american from new york to houston you could save over $800. you'd have to stop once. if you want to go from miami to cincinnati you could save over $300.

>> american did enter bankruptcy. the airline industry has been unprofitable in the past and analysts said it should go through. the air liens need it to survive. do you buy it?

>> no, both of the airlines said they're financially healthy. they both made over $200 million profit.

>> the chief executive of u.s. airways told employees we will close the merger before year end. what can they do to fight?

>> i think they can negotiate. give up some of their slots at some of the major competing airports.

>> great to have you here.