By: Shereen Mohammad
Smohammad@kcautv.com
American Airlines and US Airways are announcing their long- awaited merger, a massive, $11 Billion deal to form the world's largest airline.
It would be a mega merger, combining American's 3,500 daily flights, with US Airways' 3,000 departures. The new airline would carry more than 130 million passengers a year.
But it takes more than a year to truly merge two airlines. It's a complicated and mess business. And in the long run, for passengers, mergers reduce competition and that can drive up fares.
Just five years ago there were six major traditional airlines in the U.S., but then Delta hooked up with Northwest, United merged with Continental, and with US Airways and American coming together, that leaves just those three big carriers, and low-cost giant Southwest.
One thing passengers don't have to worry about though is losing frequent flyer miles and a combined airline will allow for more chances to rack up those points.
Sioux City Gateway Airport's Board of Trustees held a conference Thursday morning, to see what the merge means for folks right here in Siouxland. The airport's director, Curt Miller, says the merge gives them a better chance for future expansions.
"We're looking to expand service here, we've been trying to do that for several years. We've come close a couple of times. So we're still encouraged that they're looking at us for expansion," he said.
It's an expansion that will open services to possible destinations to Dallas, Phoenix and Las Vegas. Miller says the merge will take anywhere from 9 months to a year.
In the mean time., all of the involved hubs are expected to remain open. The new carrier will operate under the American Airlines name and brand, with a new look and logo.
