United, US Airways Could Hurt Business Travelers

United & US Airways are dating.  The couple may not have made the cover of People Magazine yet, but they have made the cover of US Today Business section.

Business travelers want this relationship to end before consummation.

US Airways and United if merged would be the 2nd largest airline in the world.  Their union would mean there would be one less airline out there cutting costs to fill their seats.  A merger would also mean less overall capacity, as mergers tend to lead into a reduction of flights to cut redundant traffic.

United and US Airways have been “dating” for several weeks now.  We won’t know if the dating will lead to a marriage for at least another couple of weeks is the guess on Wall St.  Business travelers are hoping the dating stops, and the two airlines break-up.  This couple has dated before, and nothing has come of it.  Lets hope that holds true again.

A consolidation in airlines and a reduction in capacity leads to one thing in the short term – higher airfare prices.  Chicago could be especially hurt.  The United hub would no longer get tough competition from US Airways in Chicago.  Washington D.C. would also be negatively impacted as US Airways is the largest carrier in the nation’s capital.

Lets see how this plays out.

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