Posted Monday, May 3, 2010
Big airline mergers raise uncertainty for consumers worried about higher fares and for cities wanting to protect air service. Cincinnati's Delta hub is holding on by a thread two years after its merger with Northwest. Continental's CEO, who will be CEO of the merged airlines, says it's "premature to talk about Cleveland service levels, or any hub for that matter." Cleveland mayor Frank Jackson took the long view Monday, telling reporters, "At the end of the day, somebody's going to fly out of Hopkins." Tuesday morning at 9, join host Dan Moulthrop as we measure the merger's potential impact on Northeast Ohio.
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What about Burke Lakefront Airport. Is there any talk of closing Burke to help drive everyone through Hopkins?
The airline domestic market share (based on Revenue Passenger Miles February 2009 - January 2010 as reported by the Bureau of Transportation at http://www.transtats.bts.gov/) indicates a moderately concentrated market. Given that, this merger seems to produce an alarming market concentration. How can this merger possibly meet the relevant standards regarding antitrust? Where are the Federal Trade Commission and the Department of Justice in this??
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