martes, 24 de abril de 2012
Airline Mergers "The bad thing but what airlines should also take advantage of" (English)
When airlines combine they can create a monopoly on many routes, reduce competition and charge higher fares. For example, the merger between United and Continental created a monopoly on routes from Houston, Newark and Cleveland to United only hubs before the merger. United for example is only one that flies from HoustonIAH to WashingtonDulles. It can also lead to poor service. On many routes where there is only one airline that flies, prices can go sky high and the service can get bad. However, airlines also should take advantage of the good things that can happen in mergers. They should take advantage of the nearby cities that become secondary hubs for them to relieve pressure from their own large hubs. United for example could use its hub in Cleveland to relieve pressure from its headquarters in Chicago. If someone in a nearby city like Des Moines, Columbus, Dayton, or any small city needs to connect to a flight to London or anyother part of the U.S. where there is no nonstop flight from their own city could fly to Cleveland instead of Chicago to connect to their ongoing flight to relieve the pressure that is Chicago. United could use its headquarters in Chicago more for those who only fly to and from Chicago who do not require connecting flights. United also could use Denver to relieve pressure from Los Angeles and San Francisco. Delta could use Memphis to relieve the pressure from Atlanta and Salt Lake City to take pressure off Los Angeles. Delta could also use Cincinnati to take pressure off Detroit and maybe even New York. Now there is the possibility of a merger between American and U.S. Airways that could offer many opportunities to relieve pressure on nearby cities. American could use Philadelphia to reduce the pressure from New York and Charlotte to take pressure off Miami. American, for example, could fly passengers wanting to go to places like London, Paris, Madrid, Rome, Frankfurt and Tel Aviv that require connecting flights through Philadelphia instead of New York to relieve the pressure in New York. American in that way could use its hub in New York City for those flying to and from New York who do not require connecting flights. American could fly those who want to go to Rio de Janeiro and many other destinations in Latin America and the Caribbean through Charlotte instead of Miami so they could relieve pressure in Miami. American in that way could use its hub in Miami for those flying to and from Miami that do not require connecting flights. American may also use Phoenix to relieve pressure from Los Angeles and maybe even its headquarters in Dallas. It's a shame that American failed to take advantage of the St. Louis hub it inherited from TWA to take pressure off Chicago. Amercan instead closed its headquarters in St. Louis and cut routes and jobs ruining what took years for TWA to build into its headquarters. If airlines use these smaller hubs to take pressure off their biggest hubs of operations, they could make way for airlines to add more destinations from their bigger hubs because by moving more connecting flights to smaller hubs it would not be necessary to have as many of the same number of flights from larger hubs and they could use the empty space to fly to more destinations from its larger hubs. American and Delta could fly nonstop routes from New York to destinations in South Asia, including Singapore, Manila, Malaysia and Australia, now that the Boeing 787 is flying. American could fly from Miami to destinations in Africa, with the possibility of making Miami also a gateway to Africa. With the new Boeing 787s American could also fly nonstop from Miami to destinations in Asia such as Japan, India, China and the Middle East. Thus Miami could also be the gateway of the Americas to the world. North Americans could use Miami to connect to destinations in Latin America, Africa and maybe even Australia. Latin Americans could use Miami to connect to destinations in Europe, Middle East and Asia. American, Delta and United could fly nonstop from Los Angeles to the Middle East with their new Boeing 787s. Airlines should take advantage of these possibilities rather than cut service from smaller hubs that they inherit from mergers with other airlines. Look what happened to the St. Louis hub when American acquired TWA. St. Louis lost its status as a hub, I would not want to see the same thing happen to other smaller hub cities such as the Philadelphia, Charlotte, Cleveland and Phoenix.
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