Big name travel businesses continue to merge, less choices for consumers
Big travel businesses continue to merge together, leaving less choices, competition, and potential higher prices for consumers.
Last week, Continental and United Airlines joined up into one mega-airline, becoming the largest in the world:
The world’s biggest airline got clearance for take-off today as shareholders of United Airlines and Continental Airlines backed a multi-billion dollar merger that will create a carrier dwarfing rivals on both sides of the Atlantic.
The combined airline, which will adopt United’s name, is forecast to have $30bn of annual revenue, carrying 144m passengers a year to 59 countries. It will be larger than Europe’s top carrier, Air France-KLM, and will overtake its US rival, the newly merged combination of Delta Air Lines and Northwest. –United and Continental Merge
With rampant airline mergers, this now only leaves three major international airlines in the USA.
While on the other side of the Atlantic, Thomas Cook and Co-op just combined, making one huge travel business:
Under the terms of the deal, the combined entity will be 70pc owned by Thomas Cook and 30pc by The Co-op. The two groups hope to achieve synergies of at least £35m, predominantly from cost reductions. –Thomas Cook Co-op combine
What does this mean for travelers?
Less options and higher prices.