US Airways-Delta Merger: What Would It Mean for the Grand Strand?
As Mickey McCamish expressed his dismay in yesterday's Sun News about the proposed merger between Delta and US Airways, today's USA Today report has only added more fodder to his (and many people's) concerns about how the elimination of a carrier and competition would cause a spike in Myrtle Beach airfares.
Dawn Bryant estimated in her piece yesterday that the merger would create one airline that would account for nearly half of all traffic at Myrtle Beach International Airport; those figures appear conservative when compared to the numbers in the USA Today analysis, which are based on data provided by Back Aviation Solutions. Not only are the Myrtle Beach percentages in this analysis at more than half (57 percent), they're actually lower than the combined figures that the merger would create in our immediate surrounding markets:
- Charleston 71 percent
- Columbia 58 percent
- Florence 100 percent
- Wilmington/Fayetteville 100 percent
Nationwide, a merged Delta/US Airways carrier would have 50 percent or more of the scheduled capacity in 111 markets, up from the 55 markets for US Airways and 31 markets for Delta where that's already the case.
Ben Mutzabaugh, USA Today's airlines blogger, offered several entries in yesterday's blog about the subject, including links to other articles that address his questions about whether a merged airline would monopolize Southern routes; whether fliers gain when airlines consolidate; which hubs would be eliminated under a "new" Delta; and how low-fare rivals are seen as key to US Airways antitrust concerns.
So, I ask you: Should we be worried about this, or is this all much ado about nothing?
It’ll never happen. This is nothing like when America West took over US Air. There’s just way too much overlap on this one, and too much chance of a monopoly.
Myrtle Beach and much of the Southeast is under served by most carriers, especially in the smaller markets. I can’t see how any Federal Oversight would allow for such a monolopy to occur. That being said, stranger things have happened.