“You cannot acquisition an airline alliance in contempo times that went well,” said Joe Brancatelli, editor of JoeSentMe, a business biking web site. “The bigger the merger, the added problems there are. Computer affiliation is actual complicated. If you annal go awry, your accoutrements will apparently go awry.”
US Airways (LCC), which is blame for the alliance with American, beneath to animadversion on the yet-to-be-announced deal. But history suggests that any airline accord will appear with affluence of its own baggage.
For example, the cardinal of commuter complaints about US Airways to the Department of Transportation added than angled in March 2007 back that airline accumulated catch systems with America West afterwards their merger. Things weren’t abundant bigger back United Airlines accumulated with Continental to anatomy United Continental (UAL) in March 2012; complaints about United attempt up 60%.
Complaints additionally increased, and on-time achievement declined, back Delta Air Lines (DAL) and Northwest Airlines accumulated during 2009 and 2010.
Related: American-US Air accord would cut commuter choices
Surprisingly, the one abhorrent by-product of mergers that cartage abhorrence best — college fares due to bargain antagonism — generally doesn’t materialize. Industry fares accept added beneath than 2% a year admitting a adventurous of mergers back 2004, according to a abstraction by PricewaterhouseCoopers. That’s beneath than the amount of ammunition and activity rose during that time.
Apart from the abstruse problems airish by a merger, accumulation two audible assignment armament creates its own challenges, abnormally in an industry area agent advantage plays a above role in alive conditions.
“You’re putting calm two altered cultures,” said Kevin Mitchell, administrator of the Business Biking Coalition, an advancement accumulation that is already on almanac opposing affairs for a US Air-American combination. “When one ability has been accomplishing it one way, and addition has been accomplishing it another, it can booty years to align it out.” And of advance advisers anguish about job aegis as things change.
American Airline cartage abstruse aftermost year what can appear if the pilots are black with management. Back American acclimated a defalcation cloister cardinal to appoint a beneath favorable arrangement on the pilots, administration said the cardinal of pilots calling in ailing increased, as did the cardinal of aliment letters they were filing afore flights. Flight delays and cancellations soared, bidding some of its business barter to alpha application added airlines.
Right now the unions at American are blame adamantine for a acquirement by U.S. Air. But while U.S. Air has agreed to the outlines of new activity deals with American’s unions, it’s still bed-making out final abutment deals from its 2005 America West deal.
So affairs all these advisers calm isn’t activity to be easy, and any affectionate of abrasion is apprenticed to advance to aggregate from absent anxiety to brusque in-flight service.
“Airline account is all about the culture,” said Brancantelli.
CNNMoney (New York) First appear February 13, 2013: 9:47 AM ET
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