Quick Take just published on possible United-US Airways merger19-Apr-2010 US Airways agreed to be acquired by United in 2000 only to see the deal fall apart due in large part to opposition from the Department of Justice's Antitrust Division. With news of renewed merger talks between the two airlines, we have just published a Quick Take report which explores what's changed in the competitive environment to allow such a merger today.
In Antitrust concerns unlikely to block a 2010 United-US Airways merger, we use historical passenger traffic data from T-100 regulatory filings to demonstrate that today's domestic airline market is significantly more competitive than even just a decade ago. We employ the Herfindahl-Hirschman Index to quantify the impact of this merger on market concentrations at each affected airport. By applying the guidelines published by the DOJ and FTC, we find only 26 airports which may attract antitrust scrutiny.
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