3. Calculate the Herlindahl-Hirschman Index (HHG to determine the market competitiveness Of the current airlines without any merger a) Of the airlines industry with Merger Proposal 1 b) Of the airlines industry with Merger Proposal 2 How is the market competitiveness affected with the proposed mergers? Explain. 4. To ensure fair business practices, antitrust laws C are enacted to also protect consumers. Which merger proposal do you think will be a cause for concern for the antitrust regulators? Do explain 5. If you are a frequent flyer (or were planning to travel by air), which airline merger will you support as a consumer? Do use the explain

\begin{tabular}{lc} \hline \multicolumn{2}{c}{ Domestic market share } \\ \hline American Airlines & 19.5% \\ \hline Southwest & 17.4% \\ \hline Airlines & 16.3% \\ \hline Delta Air Lines & 12.9% \\ \hline United Airlines & 5.4% \\ \hline Alaska Airlines & 5.3% \\ \hline JetBlue Airways & 4.9% \\ \hline Spirit & 3.4% \\ \hline SkyWest & 3.3% \\ \hline Frontier & 1.7% \\ \hline Hawaiian & 9.9% \\ \hline Other & \\ \hline \end{tabular} \begin{tabular}{|c|l|l|} \hline No. & U.S. Airlines & Market Share (\%) \\ \hline 1 & American Airlines & \\ \hline 2 & Southwest Airlines & \\ \hline 3 & Delta Airlines & \\ \hline 4 & United Airlines & \\ \hline 5 & Alaska Airlines & \\ \hline Combined Market Share of the top 4 Airlines (1+2+3+4) & \\ \hline 6 & JetBlue Airways & \\ \hline 7 & Spirit & \\ \hline 8 & Frontier & \\ \hline \multicolumn{2}{|c|}{ Merger Proposal 1: Spirit + Frontier (7+8)} \\ \hline \end{tabular}