Deal, american must agree to open up major hubs to Smaller Airline carriers, cut back on roots and the number of flights, in an age of fees and baggage costs and expensive no frills tickets what will the future of air travel look like you to you the son caller as the new American Airlines takes on. The americaner between america and u. S. Airways is a 17 billion deal. It would carry 100 million passengers annually. It will. The Justice Department announced the settlement that will allow the new American Airlines to become the king of the airways. In the agreement, the air land must give up gates and landing slots including new york, los angeles, and ronald ragan Washington National airport. Washington, d. C. At ragan airport, american must now sold 104 landoff and taking slots. We have expressed the concerns that the merger would potentially impose. The Justice Department initially blocked the deal, fearing it would hurt competition. And after securing concessions the deal was cleared for takeoff. Eric holder sought to reassure fliers. This has the potential to shift the landscape, by guaranteeing a bigger foothold for low Cost Carriers this settlement insures Airline Passengers will see more competition on nonstop and connecting routs throughout the country. The passengers still have concerned. Every time theres a merger theres a rate increase. With less competition, it means that it may drive flight rates up. In 28, delta joined forces with northwest, in 2010, united couples with continental, and two years ago, two of the smallest carriers southwest and air tran merged as well. All of these mean there will now be four big carriers controlling 70 of the Domestic Travel in the United States. Countying us now, and the ceo of compare compare, dedicated to getting the best flight deals. In the studio, the executive director of the National Association of Airline Passengers and from minneapolis, terry trip, an aviation analyst who run as consumer website called the plain rules. Let me start with you, this was not looking good, this merger, then suddenly the clouds parted the impediments disappeared and they were back in business. What did the two carriers have to do to get attorney general holders blessing . Well i think they started picking at it. The attorney generals got them to flip some of their positions on things. Based on things they wanted to handle and then slowly but surely, you could tell last week, when southwest file add brief, that they were really talking turkey on what kind of settlement they would have, and i didnt expect it to be this soon. I thought it was going to go right up to the wire. Blue i think theres close to 30 to thousand employees that are happy this got settled. Why would they be happy . In the case of american, i live in dallas where it is based. Theres been acrimonyny for a long time. They really wanted this to occur. In the case of us airways im not sure they were as giddy about it. Certainly in many cases if they were coming out of bankruptcy, it would be a much more difficult time against two other megaairline. So they have more job security . I think they will be doing some growth. There will be certain cities are there is cut backs but it looks like the settlement also includes this three to five year window where they cant cut back in certain cities are they would like to earlier than that, but thats part of the settlement. Douglas kidd, what about the flying public . What is their view . Well, the flying public has one interest, and thats being able to fly and of course flying on an airplanes that is not facing bankruptcy. And that it is hopefully will be making money and will be in a position to treat the incumbent and the passenger correctly. When an airline is facing Financial Difficulties theres a tendency to pink pennys and its one thing to go from peanuts to pretzels it is quite another when with American Airlines has receive add number of proposed fines from the faa for neglecting maintenance. And thats really important. So to the extent that this merger can resolve those issue that flying will remain safe and comfortable. Then of course the passenger is for it. If you want to fly from anywhere to anywhere, has been fewer seats, somewhat higher fairs, lower level of service. And more fees will any of that change with this new american bigger American Airlines . Now threamines to be seen. As you say, there are fewer seats. The planes are more and more frequently fully sold out. And of course anybody in business has to wonder if the airline are filling the seats. On their flights and still having Financial Difficulties theres something seriously wrong. Was this a good deal for all the stakeholders involved . The carriers and the flying public. I think absolutely. I think this is truly one of those winwin situations. I have been in this business 45 years and i think i have seen 20 mergers in that time. Way with have always heard the same story, less competition fairs go up. But in 99 of the time, it has ended up being good for everyone, and in this particular situation, this is good for united. Delta, and american, because it gives the United States three truly giant global carriers that they can have to compete with the international carriers. Many of whom are subsidized by their government. Why sit a good thing, that these two big carriers merge to become one giant one. I believe that high tide raising all boats. And when you put three giant u. S. Trance global carriers from the United States, it gives everybody a push. It gives everybody a levels of Playing Field for u. S. Airline pliable against other airline. Whether it be delta, united or america. I believe everyone will benefit from this. It is like if you have a restaurant and another one moves in you are ham pilot because it draws more people. This will be times of the year that business may be down particularly internationally. And now you have three Global Airline who will slash prices and offer real deals across the world. So this will be big for them, the one of the Biggest Airline is southwest airlines. This will grow as fast as it wants to. As fast as it can get aircraft along with jet blue. I see this as a win win for everyone. Well, you have layed out a lot for us to think about, and talk about, terry, we will come to some of these propositions in a moment, more with our guests in a moment, you rah watching inside story, stay with us. Al Jazeera America is the only news channel that brings you live news at the top of every hour. Here are the headlines at this hour. Only on al Jazeera America. The stream is uniquely interactive television. In fact, we depend on you, your ideas, your concerns. All these folks are making a whole lot of money. You are one of the voices of this show. I think youve offended everyone with that kathy. Hold on, theres some room to offend people, im here. We have a right to know whats in our food and monsanto do not have the right to hide it from us. So join the conversation and make it your own. Watch the stream. And join the conversation online ajamstream. Continuing our our conversation on the big airline meer. The ce oh, of fair compare, the executive director of the National Association of Airline Passengers and terry triplet, an aviation analyst who run as consumer website called the plain rules. Just before the break, the way this could be good for all the stakeholders involved. But we have already been living through an era, have they done any of the things that terry suggests . I am not sure if they have. The primary benefit is they have kept carriers in business. As the market has consolidated. Now, while the business the carriers are in business, and we want them to stay in business, we want them to make money, and provide good service, there has been to my mind, especially among the u. S. Carrier as focus more on making money, rather than pleasing the passenger. And in this regard, we know that going the airport has become almost like going to a carnival, where you step up, you get your boarding pass, and then you get hit with fee after fee, and then you go through airport discusser which is a whole another story, and then you get to your gate, and finally, you get on a plane, and shoo horned into a space, that is too small for the average individual, so its not much fun for passengers. Rick, help us understand what is going on here with the economics of running an airline . P. You fly a lot, theres rarely an empty line. The fees have gone up, and right now fuel prices have moderated. Why is it so tough for them to make money on a ticket . First of all, if you ask an aaron ceo on 2006, could you survive for any length of time at 100 an hour barrel oil, and they probably would have laughed you off the face of the planet. And airline in many cases are sometimes their worst enemies they wanted to grow bigger taj they could grow to do things. They wanted to have a Business Model where only twothirds of the plane was full. And by the way, thats a good Business Model if you have a lot of loyalty points and you want to fly for free, now all these points as part of the pinchers are being watered down, because theres no seats to give away. I would say in general, airline now are on a road for financability stability, the question is will we will be sitting here saying i wish i had eight megaairline instead of four. One of the common places is that people who live in big markets and fly out of major hubs probably are going to be all right, and you hear the loudest squawks from people that live in either small cities or places well away from the big markets. Is that going to be the case with this merger . Well, i think like with all mergers it will be the case, but it isnt just the merger that is causing that, i was born and raised in south dakota, where at one time, there were nine airports served by airline in south dakota. There are three or four. And what it is, is to be totally honest, i grew up where i have we had to drive 60 miles to go to a movie. We chose to live there. We with chose to live 60 miles away from a movie. So some people in washington, or oregon, or indiana, should not be subsidizing me because i had to drive so far to get to a move i have. And i feel the same way about the airline industry. And transportation, that if i if we had to drive to sioux falls to get on an airplane, sobeit. Thats the way it is. Mitchell was much closer but they had to subsidize to fly there, and then eventually they wore out, and they quit serving it. We cant be serving every small city in america that wants it. What we have had happened and a good example is air tran. Air tran was flied to mobile alabama, and they decided they were going to drop them because one thing about low Cost Carriers when they cant when they dont make money on an airplane, they pull it, and they pull it out and move it someplace else. Where, they are deciding that they are going to quit serving mobile alabama. Mobile Alabama Chamber of commerce jumped only an airplane, got businesses together, flew to air trans head effort yeaher and promised them they would support the airline. Gave them concrete promises of an o. Of money they would spend. Air tran backed off. A year later, air tran has to withdraw from mobile, because they did not have the business that they needed to have it. It is just the way it is. Its the way we live today, it isnt like r exa where every farm was given electricity and that was all subsidized. What would be a luxurious way to travel has become mas. Transit, and available out of the major cities. Pierre, etc. In the days before deregulation, those bad old days before deregulation, one of the trade offs was that carriers would service these smaller markets because they were guaranteed certain access to the larger markets. And the economic model worked out. Now some of the places that terry flames as an example, instead of being served by three carriers are served by one, and you are basic my at the mercy of what airline wants to charge. A it is true, and it is troublesome because you take a look and say well, i can fly from coast to coast then i can go from one small city up to a major hub. I should say this, that all the airline in this country serve the public. Yes, they are private business, they are in the business of making money, the we want them to make money, but theres also a public trust. We will ba back from more from our guests in a al Jazeera America a new voice in american journalism introduces america tonight. In egypt, police fired teargas at supporters of the. A fresh take on the stories that connect to you. [[voiceover]] they risk never returning to the United States. Grounded. Real. Unconventional. [[voiceover]] we spent time with some members of the gangster disciples. An escape from the expected. Im a cancer survivor. Not only cancer, but brain cancer. America tonight weeknights 9 eastern on al Jazeera America consider this the news of the im phill torez. Coming up this week on techknow. San franciscos bay bridge, an engineering marvel but this is earthquake country. How close are we to one of those faultlines . Now inovation, that might change everything. How safe is this building . Earthquake inovations, where would you wanna be if a big quake hits . Techknow sunday 7 30 eastern on al Jazeera America rick, can the United States government ever say no to a americaner now that they have said yes to this one . After they were so opposed to it at the beginning . Does this clear the way for even more consolidation. I think you hit it on the head, i am not sure theres any dance players to consolidate. But i think if you look at the case that the d. O. J. Brought, they basically the crux was these small cities of which theres between 120, and 150 of them, that are between and four hours away, will only end up with one carrier. When this is all said and done. After this is the fourth megamerger in five years. And those folks will take it on the chin. Not just a family of four that has to drive four hours. But also businesses in those areas that we would like to support for example. Which is really the crux. We knew they would take slots oout of ragan and la gourd yeah. Thats what happened in the other mergers. I would also note that low cost airline by the way, u. S. Airways is basically america west. It is a low cost airline, removing it from these locations and replacing it with jet blue, and southwest airlines, suspect going to drop prices at all. If anything, it is going to be a trade off. So in those airline certainly arent going to fly to regional cities thats not part of the Business Model. What does this mean for the carriers that are serving ren joes . The sun countries how do they fit in this environment . Rick, first you. Yeah, i would say that what they do is they end up being merged in or in the case of frontier, they are being spun out. They are going to be very niche airline, and you can build a Business Model in these fringe markets. And then niche airline have very specific markets and regions are they can make money, and thats basically what you will end up with in the United States. Terry, go ahead. I have to disagree with rick on this. I feel that if you have a city and this citynt ways 10,000 a year, someone will be there to fly them. If you want to get from point a to point b, in the United States, you are going to be able to get there. Now this is the way it has always worked. The Free Enterprise system does take over. When we look at the operation, what people fail to realize, is that government regulation, the regulation of the airline is what caused the hub operation. They protected the airline from competition. They wouldnt let an airline fly where it wanted to. Or charge what it wanted to charge. The cab, and said no, you cant go there. You cant charge this, there were no sales. No frequent flier programs. No advance purchase. No nonrefundable tickets. It wasnt until jimmy carter said lets deregulate this industry, that the industry then broke lose and yes, when rick brought up america west, it is the only airline of the first wave of new airline that have cropped up right after deregulation, theres two waves america west is the only one that survived. And the only area i look at is management. I know the management of u. S. Air waves i know what they have accomplished since they merged with american west. I know how they operate, and i dont think anyone can deny that we have seen them grow better and better than we have seen with delta. You know the management, i know the management at us airways. I know what they and will do, and i know what southwest can and will do with remaining slots. So i believe that a year from now, a year from now, we can say wow this was a good merger and it is just getting started. Douglas, you just heard his tribute to deregulation and its effects. Yet the people i see in airport, and i fly about 75 to 100,000mile as year, dont seem very happy. That is a matter of concern. Because you are not talking about routs and plains you are talking about people. And how the airline are run by their top management, their misdemeanorle management. Their line workers it all effects the passenger. And good management, goo leadership have a real effect on the airline. And likewise, poor management, poor leadership can have a devastated effect as well. This is what makes the difference between taking a trip, and enjoying your flight, or taking a trip and having a perfectly off time, and saying i will never fly that again. Rick, before we go, a lot of people are probably asking what happens to my miles that i earned on one o