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Despite stalled growth in China, Brazil and Russia, a wave of newly middle-class travelers from the BRICs and beyond will start visiting international destinations in the coming decades — dwarfing the numbers we’ve seen thus far.
The DOJ’s move to block the American-US Airways merger has sparked an investigation into the efficiencies of past mergers and United’s case suggests that the benefits of a new American are not as lofty as the airlines claim.
Nearly three years after United Airlines and Continental Airlines merged, outward appearances finally suggest a unified airline, but labor inefficiencies are threatening to further delay the fulfillment of the promised merger payoff.
“There are inherent inefficiencies in merging, but you have to overcome that and then get beyond that (to achieve the benefits),” said Borenstein, “and it sounds like they are still trying to get over that hump.”