Buy custom An Economic Profile Of The Airline Industry
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| Topic: |
Business
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| Number of pages / Number of words: |
12 / 3146 |
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(2000) found that a significant fraction of mergers are proposed because carriers in financial distress seek a merger partner. But the U.S. Department of Justice has opposed a few mergers involving a financially weak carrier because the mergers were alleged to be anti-competitive.
The Justice department opposed a merger between US Airways and United, both of which subsequently filed for bankruptcy protection...
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The Justice and the U.S. Department of Transportation have at various times put large carriers on notice that they would prosecute them for pricing and capacity decisions that were allegedly designed to drive smaller carriers out of the industry. What can be done about this? No U.S. airline has ever been found guilty of such predatory behavior, but policymakers continue to scrutinize larger competitors’ strategies that may threaten the survival of smaller airlines...
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General points of the essay
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