Airfares stay stable after airline mergers
After the marriage of American Airlines and US Airways last year — the latest of several airline mergers — more than 80% of the nation’s domestic air travel was funneled through just four carriers.
Antitrust advocates warned that the decline in competition would surely lead to higher fares.
But so far, that hasn’t happened. In fact, the number of fare hikes imposed by airlines actually declined over the last three years.
In 2011, major U. S. carriers adopted nine fare hikes, followed by seven in 2012 and three in 2013, according to the travel website Farecompare. com.
So far this year, airlines have rolled out four fare hikes, three of them limited either to last- minute flights or trips to and from Canada.
Last month Delta Air Lines initiated a fare hike of up to $ 10 for a round- trip ticket. It was matched by American and United airlines, but all three carriers rolled back the hike when Southwest Airlines refused to match it.
Data from the U. S. Bureau of Transportation Statistics show that fares have remained relatively stable, rising less than2% since 2011.
But fares don’t tell the whole story, says Diana Moss, vice president of the American Antitrust Institute.
She said airline mergers have allowed airlines to reduce service to small markets and raise passenger charges, such as checked bag fees. Airlines can also raise prices by offering fewer seats at the cheapest fares, she said.
In short, Moss said it’s too early to tell how reduced competition will affect fares.
“You would need a far longer time to get an accurate assessment,” she said. “You can’t compare one year to another or even three years to get a trend.”
Rick Seaney, founder of Farecompare. com, agrees that air travelers have yet to see much effect from the reduced competition, partly because Southwest Airlines has refused to match hikes initiated by other carriers.
American teams up with Cadillac
United Airlines has teamed up with Mercedes Benz to offer high- value frequent fliers chauffeured rides from the tarmac to connecting flights.
With Delta, the chauffeured cars that pick up premier travelers are Porsches.
Not to be outdone, American Airlines announced it has teamed up with Cadillac, starting at Los Angeles International Airport, to offer similar gate- to-gate service.
As part of the partnership, Cadillac will soon offer frequent flier members points for test- driving Cadillacs.
By the end of this year, American plans to roll out the chauffeur service at Dallas-Fort Worth International Airport and New York’s LaGuardia and John F. Kennedy International airports.
Don’t be surprised if you don’t see a Cadillac waiting for you when you get off your American Airlines flight. The service is reserved for Concierge Key club members, which is an invitationonly program for influential, big- spending travelers.
“It’s not a request service,” said Suzanne Rubin, president of AAdvantage loyalty program. “It’s a hightouch service for those incredibly valuable passengers.”
Burbank airport selling booties
If you hate removing your shoes and shuffling through airport security checkpoints barefoot, blame Richard Reid, the Englishman who tried to detonate a bomb in his shoes in 2001.
But the Bob Hope Airport in Burbank has got you covered.
The airport installed two vending machines last month that sell plastic booties passengers can slip onto protect their feet from the not- so- sanitary airport floor. They sell for $ 3 a pair.
The booties, dubbed “Flight feet,” debuted at the Burbank airport. The nonskid plastic foot covers resemble the protective shoe covers detectives wear to keep from contaminating a crime scene.
Kelley Kilgannon, the Upland woman who launched the vending business, said she hoped to get her product into major airports where security lines are notoriously long, such as LAX.
So far, sales are flat, but Kilgannon said she expects fliers to scramble to get her booties when checkpoint lines get long during the holidays.