The potential merger of US Airways and Delta Airlines might mean lower prices and more convenient flights for travelers in the Washington region and across the country, said one airline industry analyst Monday.
AeroEcon President David Swierenga, who’s also a retired chief economist for the Washington-based Air Transport Association, said the multibillion dollar merger could mean streamlined operating costs that enable a drop in ticket prices.
“If you look at prices over the years, you’ll find that [they] move very nearly in lockstep with airline costs,” he said.
Delta Chief Executive Gerald Grinstein, who opposed the merger, estimated that 10,000 jobs would be eliminated in an effort to cut costs if US Airways wins its hostile bid.
But US Airways Chief Executive Doug Parker said those layoffs would be gradual and the merger would allow the airlines to compete with low-cost carriers such as JetBlue Airways and Southwest Airlines.
“Delta did not transfer to a lower cost structure fast enough … until it makes those changes its going to be a struggle,” Swierenga said.
In addition, the merger could mean fewer multiairline connections.
Locally, the merger could mean US Airways will gain an even bigger market share at Reagan National Airport. Nearly 50 percent of the daily departures from Reagan are US Airways. Delta has about 15 percent of the daily departures. At Dulles, US Airways and Delta have a much smaller presence, with only 34 flights combined out of the more than 400 offered through the airport.
US Airways offered in November to acquire Delta, which is struggling to emerge from bankruptcy. A bankruptcy court hearing is scheduled for Feb. 7 and US Airways said it will pull its takeover bid from the table if Delta’s creditors don’t postpone the hearing by Thursday.
The Associated Press contributed to this story.
