Who else will oppose the coming wave of airline mergers?

It should come as absolutely no surprise that someone like Rep. James Oberstar (D-Minn.) would take a stand against the latest round of airline mergers. After all, Oberstar is the chairman of the House Committee on Transportation & Infrastructure, and he’s spent his career officiating the failed marriages of air carriers. “Mergers may mean short-term profits for investors,” he says. “But they inevitably mean long-term losses for workers and consumers.”

It may, however, come as a surprise who is not opposing the likely unions of United and Continental, Delta and Northwest, and perhaps even American and US Airways.

Among airline consumer advocates, not one group has warned its members or actively opposed the mergers yet. Not the Air Travelers Association, not the Coalition for Airline Passenger’s Bill of Rights and not the U.S. Public Interest Research Groups. Only the Business Travel Coalition has made a public statement about the situation in an academic commentary on the subject.

You would think that any action that inflicts “long-term” losses on consumers would light a fire under these organizations.

The apathy extends to membership groups comprised largely of travelers. There hasn’t been a peep from AAA or AARP. The National Business Travel Association hasn’t said much of anything. The last communication to its members on the subject, as far as I can tell, was more than a year ago, when it acknowledged that mergers could mean “significant changes within the corporate travel industry.” But it backed away from offering any useful advice, saying instead that “the impact of an airline merger varies from company to company.”

And let’s not forget the role of the media in all of this. Click on any story about the mergers, and you’ll notice two things. First, a sense of inevitability about these corporate combinations. And second, an absolutely stunning lack of compassion for readers, viewers and listeners who would almost certainly have fewer choices and pay sky-high air fares after the mergers are consummated.

We’ve been snoozing away while we allow airlines to seduce us with press releases about new airline meals and lie-flat beds.

If there ever were an issue to unite us — customer advocates, membership organizations and news media — it should be this one.

Fortunately, none of the proposed airline mergers have been announced yet. But why wait for the wedding invitation? It’s time to take a stand. Now.

  • http://businesstravelcoalition.com BTC

    To: Business Week
    Letter-to-the-Editor
    Submitted February 15, 2008

    I would change just one word of Chairman James Oberstar’s excellent piece opposing further airline consolidation (Viewpoint, Feb. 15). He says airline mergers will lead to “further reductions in choice for consumers, and probably fewer flights, fewer jobs, and higher fares.” Substitute “inevitably” for “probably” and business travelers are fully on board.

    Business travelers know from painful experience around the world that each and every time competition is eliminated in key airline industry markets, we pay more and get less. As the number of airlines shrinks, so shrinks the focus on consumer preferences. And with airline service and satisfaction levels in the US already dangerously low, anti-consumer mergers would leave passengers permanently trapped and out in the cold.

    Kevin Mitchell
    Chairman
    Business Travel Coalition

    Note: BTC recently completed a three-month survey and analysis regarding potential U.S. airline industry consolidation for the U.S. General Accountability Office. This analysis and BTC’s formal position on consolidation will be released shortly.

  • Jasper

    John Edwards was talking in his campaign about two Americas: the haves and the havenots. He had is almost right. There are the stockholders, and the consumers.
    Unfortunately, capitalism in the US has turned to a form where hedge-funds have the last say on how companies can quickly increase their stock value, whereas consumers have lost any consumer power.

  • Bob

    “Who else will oppose the coming wave of airline mergers?

    Maybe only other impotent politicians like Oberstar who can rant all he wants, but he cannot block a business merger — not even an airline one no matter what committee he heads. He needs to listen to Terry Trippler (based in MSP) who said in the AJC ‘Get over it’.

    “I’m telling people here, ‘Get over it,’ ” Trippler said. “The Fortune 500 company is gone. The headquarters is gone. The red tail [the Northwest insignia] is gone.”

    “But the critical thing is the hub, and we will save the hub.”

    And watch Oberstar take credit for that.