2000 Travel News ArchiveTravel

United Airlines to purchase US Airways

The announcement that the boards of directors of United Airlines and US Airways have approved a merger agreement is good news for the DR. Latin America and the Caribbean stand to gain as it would increase the number of direct flights to the US and more alternative through Miami, according to United. Today one US carrier, American Airlines, basically controls traffic to the DR and there is a scarcity of seats. For years now, United has announced its interest in the Dominican Republic, but flights haven’t materialized. Just recently, US Airways announced it had filed with the US Department of Transportation for daily flights to Santo Domingo as part of a general Caribbean expansion plan. United’s financial clout behind US Airways consolidates that airline as a major player for the Caribbean market. A US$4.3 billion cash purchase was announced. The merger combines United’s extensive east-west system with US Airways’ comprehensive north-south routes, creating what promoters are calling the first truly efficient United States nationwide network and the world’s largest airline. Nevertheless, a Wall Street Journal story says that the merger was objected by the United Airlines pilot syndicate and could face opposition by groups that site a monopoly is being created. The merger, they say would concentrate 80% US travel in three major airlines, affecting competition and consumer interests. For more information on the merger, see: http://www.united.com/site/primaryPR/1,10026,1528_602,00.html (25 May 2000)