Pros And Cons Of Mergers

Libraries weigh pros, cons of mergers, pledged funding source

As city libraries collect signatures to petition for a vote on a special library tax, suburban libraries are talking about consolidating and getting money from Allegheny County.

"We're pretty much putting everything on the table," said Marilyn Jenkins, executive director of the Allegheny County Library Association. "Certainly, sustainable funding at the county level is one of the topics of conversation we'll have over the next year or so."

The association represents 45 systems in the county with 73 locations, including those of the Carnegie Library of Pittsburgh. Weighing the pros and cons of consolidating and developing a dedicated funding source are twin goals in the association's strategic plan, which extends through 2013.

The financially troubled Carnegie Library has collected more than 3,000 signatures, though it needs only 2,800, to get a referendum on a dedicated city tax to support the system on the November ballot. Carnegie Library spokeswoman Suzanne Thinnes said the system would like to collect 10,000 signatures by the July 15 deadline.

Merger talks are taking place as libraries throughout Pennsylvania are bombarded by changes such as digital readers and state budget cuts. Over the past three years, the state has slashed its basic aid to libraries by $22.2 million, or 29.4 percent.

"Whenever there's a constraint of funds, it's an opportunity to rethink how you're doing business," Jenkins said.

Among the options is a wholesale merger of the city and county systems; separate city and county systems but a consolidation of administrative services; and a hybrid in which some libraries would share services.

Jenkins said this "hybrid" approach is likely to get support.

"We would want to look at a kind of model that would not only benefit communities that are struggling but also those that have a long history of support for their libraries," she said.

Christy Fusco, director of the Monroeville Public Library, likes the idea. "I support us taking advantage of opportunities to streamline our business model," she said.

Maria Joseph, director of the Moon Township Public Library, favors consolidating various libraries. "There's a lot of money going out to individual libraries that probably could be used more efficiently if there weren't as many locations," she said.

Joseph said the Moon library outgrew its space and lacks staff to offer more programs.

Blog Archive » The pros and cons of airline mergers

Around this time last year two U.S. legacy carriers – United and Continental – announced that they would merge. A year later, it seems little has changed in the day-to-day operations affecting the traveler experience, although, according to the company’s latest communications, it will still be another year before both airlines truly become one.

The implications of airline mergers are complex, but there are two key advantages and disadvantages that are clear and will perhaps help us better understand the impact of another merger.                   

Advantages: Merging airlines are typically quick to market the many benefits of such a venture, putting increased efficiencies at the top of the list. Catchphrases such as ‘greater efficiency’ and ‘reduced redundancies’ become all too common and seem a bit untrue, although they may not be. Airline consolidation can mean less congestion from reduced players in the market and fewer delays resulting in a better overall traveler experience. In that respect, mergers can mean that flights get to their destination on-time and that travelers enjoy more streamlined check-in procedures.

Increased International Competition United Continental Holdings will be the largest U.S. airline once the merger is complete, giving them more leverage to compete in international markets both with Delta (who recently merged with Northwest) and foreign flag carriers. This is beneficial to both United and Continental’s frequent flyers who might have to otherwise fly a ‘non-preferred’ carrier, and also benefits the industry by providing more potential profitable markets and in turn, hopefully, more financial stability.

Disadvantages Perhaps the most concerning of all is the possibility of fare increases. With reduced competition from a lower number of carriers, airlines will have the ability to further increase their fares. Surveys show that prices have increased significantly in the past year while capacity has decreased, which is creating the perfect storm for concerns about future fare prices. Price increases, especially in routes with reduced redundancies, are very likely.

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