United/US Airways Merger: What Does it Mean for Tempe?
News of a potential merger between United and US Airways has some Arizona residents concerned about job cutbacks and sky-rocketing fares. Our very own Mike Pearson, who has almost 30 years of experience as a Tempe aviation law attorney, professor, and air traffic controller, spoke with Ted Simons recently about what the merger might mean for airline consumers locally.
We already know that the economy and rising cost of fuel has many airlines struggling to cut routes and sometimes jobs; however, this has also led many airlines to seek mergers to survive. We’ve seen more airline mergers recently, such as Delta and Northwest, and United itself had considered a merger with Continental not all that long ago. Although the merger between United and US Airways is becoming a stronger possibility—some say a probability at this point—much will depend on both businesses and anti-trust scrutiny. US Airways is still in the process of transitioning after its recent merger with America West.
What does all of this mean for Tempe? The potential loss of a Fortune 500 company is worrying; Pearson has said that we could see job cuts, especially at the administrative and corporate levels. Since United is the larger company, Pearson says it seems likely that they will keep their corporate headquarters in Chicago if the merger goes through. However, Pearson also says that nothing is certain at this point, and the business decisions of both companies will figure highly into the final outcome.
Regarding the potentially higher fares after the merger, Pearson did mention that competition with economy airline Southwest should help keep fares more reasonable despite the change in supply and demand.
If you have questions about Tempe aviation law, or if you are looking for a skilled Arizona personal injury lawyer, give Curry, Pearson & Wooten a call today at 1-888-929-5292 to schedule a completely free consultation and request your FREE copy of one of our many helpful books.