Consolidating airlines

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The airline's final blows came from the Brexit-weakened pound and terrorism in Tunisia, Turkey and Egypt, which led competitors to shift additional capacity into the U. K.-Portugal markets, where Monarch was most exposed."The fact that they faced bankruptcy around the same time is mostly just an accident," Humphreys said of Alitalia, Air Berlin and Monarch.The collapse of the carriers will result in some consolidation of the European airline market, especially if major players Lufthansa and Easy Jet buy up portions of Air Berlin or Alitalia.

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Airlines and industry analysts point out that the vast majority of travelers are merely looking to get from point A to point B, and have little interest in route networks, pricing structures, or fleet integration.The recent spate of European airline bankruptcies began with Italian legacy carrier Alitalia, which initiated insolvency proceedings, the European equivalent of bankruptcy, on May 2, a week after its employees rejected a cost-cutting plan designed to make the chronic money loser profitable.Alitalia was followed by Air Berlin, which filed for insolvency in mid-August after losing more than

Airlines and industry analysts point out that the vast majority of travelers are merely looking to get from point A to point B, and have little interest in route networks, pricing structures, or fleet integration.

The recent spate of European airline bankruptcies began with Italian legacy carrier Alitalia, which initiated insolvency proceedings, the European equivalent of bankruptcy, on May 2, a week after its employees rejected a cost-cutting plan designed to make the chronic money loser profitable.

Alitalia was followed by Air Berlin, which filed for insolvency in mid-August after losing more than $1.2 billion over the course of 20, and after 29.2% shareholder Etihad decided it would not infuse the German carrier with further funds.

One recent study conducted by investment research company Morningstar, Inc., suggested that American must “take drastic action if it hopes to compete against its larger foes” and that “any scale advantage it may have [once] garnered is gone.” “There was, and is, too much capacity in the industry,” George Hobica, founder of Web-based discount airfare service Airfarewatchdog, said.

“And it’s too easy to start a new discount airline.” How is this slew of mergers and acquisitions affecting the flying public, though? Consolidation allows members of frequent flyer programs and loyal customers of a particular airline to travel to more destinations on that carrier, allowing them to stick with a familiar option, earning them miles, or even reducing airfare.

Such factors may be especially relevant today, given that the industry is still reeling from the economic recession — one that occurred after the 9/11 terrorist attacks had already brought about a decline in air travel.

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Airlines and industry analysts point out that the vast majority of travelers are merely looking to get from point A to point B, and have little interest in route networks, pricing structures, or fleet integration.The recent spate of European airline bankruptcies began with Italian legacy carrier Alitalia, which initiated insolvency proceedings, the European equivalent of bankruptcy, on May 2, a week after its employees rejected a cost-cutting plan designed to make the chronic money loser profitable.Alitalia was followed by Air Berlin, which filed for insolvency in mid-August after losing more than $1.2 billion over the course of 20, and after 29.2% shareholder Etihad decided it would not infuse the German carrier with further funds.One recent study conducted by investment research company Morningstar, Inc., suggested that American must “take drastic action if it hopes to compete against its larger foes” and that “any scale advantage it may have [once] garnered is gone.” “There was, and is, too much capacity in the industry,” George Hobica, founder of Web-based discount airfare service Airfarewatchdog, said.“And it’s too easy to start a new discount airline.” How is this slew of mergers and acquisitions affecting the flying public, though? Consolidation allows members of frequent flyer programs and loyal customers of a particular airline to travel to more destinations on that carrier, allowing them to stick with a familiar option, earning them miles, or even reducing airfare.Such factors may be especially relevant today, given that the industry is still reeling from the economic recession — one that occurred after the 9/11 terrorist attacks had already brought about a decline in air travel.

.2 billion over the course of 20, and after 29.2% shareholder Etihad decided it would not infuse the German carrier with further funds.One recent study conducted by investment research company Morningstar, Inc., suggested that American must “take drastic action if it hopes to compete against its larger foes” and that “any scale advantage it may have [once] garnered is gone.” “There was, and is, too much capacity in the industry,” George Hobica, founder of Web-based discount airfare service Airfarewatchdog, said.“And it’s too easy to start a new discount airline.” How is this slew of mergers and acquisitions affecting the flying public, though? Consolidation allows members of frequent flyer programs and loyal customers of a particular airline to travel to more destinations on that carrier, allowing them to stick with a familiar option, earning them miles, or even reducing airfare.Such factors may be especially relevant today, given that the industry is still reeling from the economic recession — one that occurred after the 9/11 terrorist attacks had already brought about a decline in air travel.

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