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US Airways-AA Merger Not To Impact Indian airlines

: Dec 6, 2013 - : 9:01 am

The merger of US Airways and American, which was cleared by an American judge recently, is unlikely to have much impact in the Indian market, according to Kapil Kaul, Chief Executive Officer, Centre for Asia Pacific Aviation (CAPA).
A federal bankruptcy judge cleared the way for the two American airlines to merge and create the world’s largest airline.
The tie-up was first announced in February. Agencies say that the new airline will operate 1,500 aircraft, with 600 more on order, and have an annual turnover of almost $39 billion.
It will offer more than 6,700 daily flights to 336 destinations in 56 countries and maintain all hubs now served by either carrier, while being a member of the Oneworld alliance.
Pointing out that the merger of the two airlines was on expected lines, Kaul felt that the impact is likely to be largely felt in the US market.
“We do not see American airlines flying to India in the near to medium term,” he said adding that one will have to see what will happen to the tie-up between American and Emirates.
“The tie-up will make Emirates’ operations in and out of the US very competitive and can help drive more traffic from India,” Kaul said.
Sharat Dhal, President, Yatra, was of the opinion that the merger could look at American restarting its India flight which could only lead to more seats and a reduction in fares.
American earlier operated a daily non-stop flight between Delhi and Chicago which started in 2005 and was discontinued in 2012.
Amrit Pandurangi, Senior Director, Deloitte, felt that the impact of the merger will not be “very significant” in the Indian market but could make a difference in the domestic US market and in the transatlantic market.

 

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