Columnist Kevin Quon says the rising cost of jet fuel is one reason airlines continue to look for savings through mergers. "[A]irline companies spent $48 billion on jet fuel for domestic and international travel in 2011," writes Quon. "These prices now amount to 35 percent of an airline's operating cost compared to 10 percent back in 2001."
The merger of US Airways and American Airlines will likely lead to the carrier giving up some flights on overlapping routes. Smaller airlines could enter the fray in airports such as Philadelphia International Airport and LaGuardia Airport in New York, experts say.
The merged American Airlines and US Airways will be effectively managed via the smaller airline, a unique situation in airline mergers, this feature says. Experts say the consolidation is a trend that will help rationalize capacity.
Columnist Christopher Swann says Congress should lift limitations on foreign ownership of U.S. airlines. Swann says allowing U.S. airlines to merge with overseas airlines would allow greater profitability. "There's just one sticking point: outdated security fears limit foreign fliers to having no more than a 25 percent stake in American carriers," he writes.
A group of more than 30 businesses are urging the European Union to reform its emission-trading scheme. "The effectiveness of the EU ETS has been undermined by a surplus of allowances," the companies wrote in a letter to members of the European Parliament.