A PYMNTS Company

US: PwC report on airline mergers ‘flawed,’ says American Antitrust Institute

By  |  January 27, 2014

Auditing firm PwC released a report on the effects of airline mergers, finding the deals to benefit consumers with lower fares, say reports.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The findings come just weeks after a merger between American Airlines and US Airways was cleared after a legal battle with authorities. The merger is set to result in the world’s largest airlines, setting off alarm bells regarding how the deal will affect flyers.

    But according to PwC, airline acquisitions allow companies to eliminate redundancies in flying routes, allowing smaller airlines to compete and force lower fares.

    PwC head of transportation and logistic Jonathan Kletzel told reporters that while some deals negatively impact the market, “mergers have created more opportunities for low-cost carriers.”

    But according to the American Antitrust Institute’s vice president Diana Moss, PwC’s study is “pretty flawed,” arguing that fares have risen up to 19 percent in some markets.

    Full Content: Los Angeles Times

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.