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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.

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

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