Consolidating miles in airline mergers
Some of the now long-defunct names may sound familiar, especially to those who remember the heyday of the Jet Age: Pan Am. Meanwhile, major carriers have digressed into playing a game of musical chairs with each other, each airline overtaking the last in scale following a merger or corporate partnership. That trend of consolidation seems to be accelerating. airline industry has always wanted to consolidate,” Perry Flint, editorial director and associate publisher of , said in an interview.Herfindahl-Hirschman Index measures impact of merger on market concentration Herfindahl-Hirschman Index (or HHI) is an indicator of the level of competition in an industry.
AAdvantage only has three elite levels versus US Airways’ four, so the 75,000-mile US Airways Platinum members will get lumped into the 50,000-mile AAdvantage Platinum level, something many US Airways elites are not happy about.
In 2005, the top 11 airlines comprising 96% of domestic market share by available seat miles were American, Delta, United, Continental, Northwest, Southwest, U. Airways, America West, Alaska, Jet Blue (JBLU), and Air Tran.
In addition to frequent flyer miles, elite miles and lifetime miles will all transfer over.
This will elevate many to higher elite levels and even lifetime elite status.
Their case illustrates how far the merger has come — and how far it has yet to go.