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Last updated on May 25, 2012 at 16:52 EDT

Airline Merger Could Trim the Cheap Seats

February 19, 2008
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A U.S. merger of Delta and Northwest Airlines would likely lead to fare increases in some markets, a report said.

As the airlines discuss merging and possibly trimming duplicated flight routes from their combined operation, the decreased competition would mean fuller planes and less incentive for the mega-airline to lower fares, CNN reported.

The first seats to be canceled from the airline’s offerings would be the cheaper seats, the report said.

Larger hubs — New York and Los Angeles — would be less likely to see price hikes than smaller hubs, like, Roanoke, Va., which is currently served by both Delta and Northwest.

Should the airlines merge, Roanoke’s services would be likely be trimmed and its customers would be vulnerable to fewer flights and price hikes.

Regulators would likely scrutinize the deal with fare prices in mind. It was estimated a year ago that a major airline merger would result in three large carriers handling 80 percent of U.S. flights.