Tuesday, April 15, 2008

Flying Prices On The Sky!

With the new merge between Delta Air Lines and Northwest plus the various airlines who have declared in bankruptcy flying prices will start to rise again! Now that there are less airlines in the market, the few ones left can dominate the prices!

After so many years of American Airlines and other's monopolies, small airlines were able to compete and land prices so that traveling was way more affordable! If prices rise to the sky traveling will be minimum since few will be able to afford it especially with the recession the US is facing.

The government should interfere in this types of merges, just like it should take a close look at the Microsoft and Yahoo merge...these are big companies coming together to have more control of the market..We need to be careful!!

3 comments:

Lola said...

With the way things are right now, is it really in companies best interests to become these huge, colossus-type conglomerates who eventually become too big to be relevant or so big that they end up being broken anyway? Take Microsoft and Yahoo for example. Maybe it seems like a good idea, bringing these two together...but it seems to be a marriage of convenience and competition. I think in the long run, it just wont work out.

Unknown said...

Companies are merging left and right. I wouldn't be surprised if powerful companies merged more often. It is a great business strategy for Delta and Northwest. I hope more companies team up in the future in order to strengthen their brands. I would love to see a powerhouse like Starbuck's pair up with a company.

T-Bowz said...

It is good that Im graduating soon so I dont have to fly as much, and dollar is weak so even the plices go up, I can still manage. However, Merging is a great tool for the businesses to easily bring up their stock prices. But it is hard to manage so i hope this marge will be success and I want them to offer good service in the future