Why does government continue to approve Mergers in the Airline Industry, particularly in this economic environment, This is not conducive to growing the economy but rather shrinking it. Mergers bring layoffs because of the duplication in job functions and routes flown by the two merging airlines. It does not afford better pricing for tickets but rather monopolizing certain routes if the two carriers concerned were the major carriers from those cities, they then eliminate the competition and raise the fares because you have no other choices as travelers from those cities. So who wins in a merger, not always the share holders as they are often offered long term promises that do not always materialize. Certainly the Executives who are given either multi million dollar hand shakes to leave quietly and those that stay are given even bigger bonuses and salaries. Does the DOJ really look after the interest of the people, the Employees and the public who frequent these industries of mergers.
Food for thought !
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