It’s too soon to know what the impact from a merger between American Airlines and US Airways will bring, one long-time tourism professional said Thursday._.jpg "Arrival by American Airlines (Gabriel Padilha photo).")
“It’s a little iffier for the U.S. Virgin Islands than a lot of Caribbean islands because we get a lot of lift from both airlines,” said Richard Doumeng, manager at Bolongo Bay Beach Resort and president of the Caribbean Hotel and Tourism Association.
Tourism Department spokesman Allegra Kean-Moorehead could not be reached for comment.
The merger of the two airlines was rumored for close to a year but was officially announced early Thursday morning, creating the world’s largest airline.
Doumeng said the merger was a cause for concern since both American and US Airways have strong presences on the east coast. Those are prime markets for the territory and if the number of seats to the territory is reduced it will be bad news.
“It’s a wait and see,” Doumeng said.
Putting on his Caribbean Hotel and Tourism Association president hat, he said other Caribbean spots view the merger as good news since it might mean a replacement of flights lost when American Eagle cut back.
On the bad news side, Doumeng said that, historically, mergers bring higher airfare prices but it remains to be seen what will happen on flights to the territory since it’s a vacation destination rather than a business one.
Doumeng also noted that Southwest Airline recently expanded to San Juan when it merged with Air Tran. Air Tran had flown to San Juan. While no code shares between Southwest and any regional carriers that fly to the territory have been announced, Doumeng said that any increase in flights to San Juan was a good thing for the territory.
“Of course, we want them to get here directly,” he said.
As for that other burning question – what will happen to frequent flyer miles – it’s too soon to know that too.
_crop.jpg "Coming in for a landing on St. Thomas (Gabriel Padilha photo).")
In a letter to participants in American’s frequent flyer program, AAdvantage program president Suzanne L. Rubin said the merger is expected to enhance its existing loyalty program benefits through expanded opportunities to earn and redeem miles across the combined network.
“I want to assure you that your AAdvantage miles are secure and existing miles will continue to be honored. In addition, you will continue to earn miles through existing AAdvantage participating companies and you will be able to redeem those miles for the same great awards — flights, upgrades, car rentals and hotels just to name a few,” Rubin wrote.
According to the joint press release announcing the merger, additional information will be provided to customers of both airlines’ frequent flyer programs on any future program updates, including account consolidation or benefit alignment.
The combined airline will offer more than 6,700 daily flights to 336 destinations in 56 countries. It is expected to maintain all hubs currently served by American and US Airways. Both airlines expect that the regional carriers they own – AMR Corporation’s American Eagle and US Airways’ Piedmont and PSA – will continue to operate as distinct entities.
The combined airline is expected to bolster American’s industry-leading position in Latin America and the Caribbean, the press release indicated.
American Airlines’ top brass put a good spin on the merger. “Today we are proud to launch the new American Airlines – a premier global carrier well-equipped to compete and win against the best in the world,” said Tom Horton, American’s board chairman, president and chief executive officer.
“Together we will be even better positioned to deliver for all of our stakeholders, including our customers, people, investors, partners and the many communities we serve.”
