Airline consolidation is one of the key trends in the modern air travel market. The Association of European Travel Agencies and Tour Operators (ECTAA), together with the European Passenger Federation (EPF) and the European Technology Association and Travel (ETTSA) conducted a study to find out how this trend is impacting the market from a consumer perspective.
As a result, economic experts came to the conclusion that Consolidation significantly reduces consumer choice.
In particular, the study states that airline mergers, acquisitions of carriers by larger players, the creation of joint ventures and code-sharing agreements restrict competition and reduce consumer choice, and also lead to higher ticket prices.
As airlines and airline groups become more powerful, they are increasingly lead consumers to their own websites, where, naturally, there is no competitive information and the ability to compare prices with offers from other carriers.
"The results of this study demonstrate the negative double-edged effect of airline consolidation. Consolidation itself reduces the number of competing airlines, while large carriers and groups gain increasing power. This power allows them to keep consumers on their websites, depriving them of the opportunity to compare competing options," says Christoph Klenner, Secretary General of ETTSA.
"The study clearly demonstrates the need to reassess the impact of airline consolidation on European consumers. Depriving the industry of transparency is a genuine attack on the EU air transport system, which has been successfully built over 25 years. Europe has the legal instruments and regulatory framework to prevent further detrimental impacts on consumers. The ability to obtain tickets at the best price is a fundamental interest and right for passengers of any mode of transport," adds Josef Schneider, Chairman of the European Passenger Federation (EPF).
Source: trn-news.ru