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May 6, 2012 / oneworld82

US Airways take over of AMR – Possible network consequences

The much-speculated (yet still very far away) hostile takeover of AMR by LCC has generated a lot of press about rising fares, labor cost-savings, etc.

A different (and, in my opinion, equally interesting) consequence is related to network implications. This article from points out what the synergies and overlaps between the two carriers’ networks would be. Certainly, a combined carrier would have dominance in the east coast and a strong transatlantic presence. Yet, the trans-Pacific network would still be considerably small, and LCC focus on (mainly) the East Coast may not be sufficient for the new carrier to drive enough traffic in to strengthen this network with new routes.

Proportion of traffic from AMR/LCC hubs

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