American Airline Mergers

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In recent years, the U.S. airline industry has been restructured and consolidated into a number of mergers. By 2014, the top 6 airlines controlled 94% of domestic market share by available seat miles. Mergers in the U.S. airline industry reduce competition and increase efficiency in resource utilization. It also benefits customers with a wider range of coverage with more routes and destinations. It was inevitable for American Airline to become a merger. After 2005, when the top airlines merged (Delta with Northwest and United with Continental), American was starting to lose its market share to its peers. Competitors took advantage of enlarged capacities and geographic coverage, while America was struggling to maintain its unit revenue. American’s
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