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The Sound of Ideas

Making Sense of the Merger

Posted Monday, May 3, 2010

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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.

Tags

Economy, Regional Economy/Business - Analysis and Trends, Government/Politics, Other, Transportation

Guests

Charlie Leocha, director, Consumer Travel Alliance
Thomas A. Waltermire, CEO, Team NEO
Joseph Roman, CEO, Greater Cleveland Partnership
James Pilcher, business reporter, Cincinnati Enquirer

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ERIC 9:34 AM 5/4/10

What about Burke Lakefront Airport. Is there any talk of closing Burke to help drive everyone through Hopkins?

Steve 9:37 AM 5/4/10

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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Every weekday at 9:00 AM (EST), The Sound of Ideas reports the news, explains the news, and sometimes makes news. The Cleveland Press Club awarded it “Best Radio Show” in Ohio and thousands daily find it to be an indispensable source of information about what’s most important to Northeast Ohioans.

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