Bloomberg Report: Airline merger could mean higher airfares

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by Deborah Kostroun / Bloomberg

Bloomberg

Posted on March 20, 2013 at 7:36 AM

DALLAS -- The proposed merger of US Airways and Texas-based American Airlines will mean higher airfares for consumers and less service in smaller communities.

 

That's according to consumer advocates who testifited at a senate hearing on the deal.

Meanwhile...The CEO's of both airlines said fares would be kept in check by competition from smaller airlines.

The merger is projected to add up to $1 billion in savings each year.

The merged airline would keep American's name and its Fort Worth headquarters.

Speaking of airlines...Expect to see some new tv ads for Southwest Airlines. The Dallas-based airline is touting new improvements to service like inflight wifi, live television, and revamped interiors with new leather seats and larger overhead bins.

One Texas company founded in 1930 is almost done with liquidating its brand. 

All the maneuvering to sell Irving based Hostess brands is just about over. A judge has approved the asset sales totaling more than $800 million dollars of many of Hostess' brands.

Metropoulos, that's one of the new owners of twinkies, Ding Dongs and Ho Ho's is also the owner of Pabst beer. They expect to have Twinkies back on store shelves by this summer.

Flowers foods which makes tastycakes is buying the bread brands like Wonder Bread and Nature's Pride brands.

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