Wednesday, June 2, 2010
Posted by D. Daniel Sokol
The GAO has issued a report on the competition implications of the United/Continental merger.
An early section of the report reads:
One of the most important issues in this merger will be its effect on competition in the airline industry. For example, GAO’s analysis of 2009 ticket data showed that combining these airlines would result in a loss of one effective competitor (defined as having at least 5 percent of total traffic between airports) in 1,135 markets (called airport pairs) affecting almost 35 million passengers while creating a new effective competitor in 173 airport pairs affecting almost 9.5 million passengers (fig.). However, in all but 10 of these airports pairs there is at least one other competitor.