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KLM/Air France merger could raise fares
The proposed merger between KLM and Air France, creating Europe’s largest carrier, has met with concern from a number of industry groups.
The Guild of Business Travel Agents (GBTA) says it thinks the merger could push prices up due to reduced competition between carriers, particularly on longhaul routes. Chairman, Charles Sommer said: “The GBTA is very much in favour of keeping competition between airlines as this helps keep prices down and gives a much better choice for all passengers.
“Currently UK business travellers and leisure passengers can compare prices when using Air France and KLM hubs in Paris and Amsterdam to connect onto to long-haul flights – this benefit will now stop.”
Alitalia is also looking to be involved in the merger, which according to OAG data would create an airline that is not only Europe’s largest, but almost 100% larger than its nearest rival (in terms of frequency and available seats).
OAG data managing director, Lynne Fraser added: “It remains to be seen whether this will lead to further consolidation within the industry.”
Another party expressing concern over the merger is the tourism spokesman for the Liberal Democrats, Adrian Sanders MP, who says the merger will leave tourists with less choice and higher fares. He said: “This particular merger is not taking into account the best interests of the passenger.”
Read our previous stories:
30-Sept-2003 Air France-KLM deal to go ahead
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