Urge to Merge.AVIATION SOOTHSAYERS HAVE BEEN FORESEEING A FUTURE with fewer, but bigger, airlines. The latest megacarrier moment unfolded with American Airlines' takeover of bankrupt Trans World Trans World is an economic simulation game for the Commodore 64 published by Starbyte Software in 1990. The player takes control of a new trucking company and competes against up to either three other human or computer players to make the most money. Airlines--a merger that's got a bit of everything for Latin America Latin America, the Spanish-speaking, Portuguese-speaking, and French-speaking countries (except Canada) of North America, South America, Central America, and the West Indies. . * The scary news? If the U.S. Department of Justice approves the merger, airlines in Central and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. will be butting heads with an even stronger American Airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the . In the Caribbean, where the merger eliminates TWA TWA Time-weighted average, see there as a competitor, American's stronghold could become a stranglehold. Watch for fare increases there. * On the upside, the consolidation opens the door to better connections and more rational routing. Tapping into TWAs hub and route system could mean Latin American travelers won't always have to land first in Miami or Dallas. * "Latin America is very profitable for American Airlines, so it's not about to damage that. What it may do is open some new U.S. gateways," says Bob Booth, president of Aviation Management Services in Miami. "And United could see more inroads inroads Noun, pl make inroads into to start affecting or reducing: my gambling has made great inroads into my savings inroads npl to make inroads into [+ in Latin America." * Booth predicts Delta and Continental won't sit idly by and watch American solidify its dominance. All that competition could spark fare cuts. * What's good for Latin America may not be for the United States, however. "It's going to have a domino effect. You're eventually going to end up with three major carriers owning 90% of the domestic market," Booth says. "And that's bad for the consumer." |
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