Oligopoly: Airline Mergers

A 1962 song said, “Breaking Up is Hard To Do.” Even more so, it is tough to get together and create an oligopoly. When Continental and United merged during 2010, it took 14 months to solve their coffee problem. The…

Your Airfare and Airline Profits

What does your airline ticket pay for? In order of size, these represent the expenses for a US Airways flight according to WSJ journalist Scott McCartney: Fuel (close to 30%) Salaries (maybe 20%) Buying and leasing planes (16%) Federal taxes (14%)…