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Ear to the Ground

Continental to Be United

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Posted on May 1, 2010
Flickr / LAXFlyer

Barring any last-minute mess-ups, a deal to merge air carriers Continental and United will likely be announced as early as Monday, a union that would create the world’s biggest airline.

Industry watchers have historically favored airline consolidation, claiming that there are currently too many carriers and too much service overlap.

Bigger may be better from a bean-counter’s point of view, but it could end up costing consumers more, which is usually does. —JCL

The Guardian:

The crowded US airline industry is in for a shake-up as two of the country’s biggest players, Continental and United, put the final touches to a merger that would create the world’s largest carrier in terms of passenger numbers.

Two years after a previous attempt at a tie-up failed, Continental and United began talking earlier this month and have agreed terms. Board meetings are due to take place over the weekend. Barring any last-minute hitches, a deal could be announced as early as Monday.

United, the bigger of the two airlines, would be the surviving brand and would provide the combined carrier’s headquarters in Chicago. Between them, United and Continental would create a force larger than Delta and Northwest, which agreed to merge two years ago.

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RAE's avatar

By RAE, May 2, 2010 at 6:55 am Link to this comment

With communications technology so sophisticated that we can almost touch one another even though we’re 10,000 miles apart, it astounds me that so many think it’s necessary to physically travel to meet.

Almost every week we hear how our lard-assed politicians and their entourages are off on another usually fruitless junket at taypayers’ expense. Hundreds of millions have been completely wasted just flying back and forth to meet. Why couldn’t a teleconference have been set up?

As well, big business is still hauling executive meat all over the planet to discuss and make “deals” such as, perhaps, about saving a few cents making useless plastic junk that nobody has asked for and nobody needs. But fly they do… and just tack the expense into R&D costs and on to the consumer.

We have FAR too many airlines… in fact, we have FAR too much of everything except the really important stuff… like free health care, adequate housing, clean air and water and healthful food. Guess there’s no money in “junk” like that, eh?

Anyway… best of luck to the airlines and those “air”-headed passengers that I see on TV lined up like cattle at holiday periods with their small trailer-loads of “important possessions” in tow. It must be great fun to be required to arrive so early for a flight that there’s time enough for a heart bypass operation while waiting in the barn-like ambiance they euphemistically call the “passenger lounge,” then to be essentially strip searched and packed like the proverbial sardines into an aluminum can.

I travelled some of the world 50 years ago when it was both economical and civilized to do so. I wouldn’t fly today if it were FREE! I pity those who think they must.

I have the solution though. How about everybody just STAY WHERE YOU ARE and rent a travelog DVD from “National Geographic.” You’ll likely see more, learn more and most certainly will have a lot more money in your bank account afterwards (even if you had to buy the “home theatre” setup to watch it - you’d still be in pocket!)

There’s really not that much anywhere in the world that I’ve seen that’s worth the hassle of getting there and back anymore.

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By Airline Guy, May 2, 2010 at 3:04 am Link to this comment
(Unregistered commenter)

You really shouldn’t comment when you understand absolutely nothing about the airline industry, let alone customer service. First, Continental has been getting JD Powers awards for amazing customer service, while United has lacked. 

Second, WAKE UP. An airline ticket costs the same now as it did thirty years ago. This is the airlines’ own faults for creating so much supply that outpaced the demand, keeping the prices low. But, either way, while ticket prices are similar to thirty years ago, fuel has gond, and every other expense has doubled or tripled. Yet incoming revenue streams stay the same. Hence, you won’t get the same hot meal, hot towel, and all the X-tras that you are now paying for.

Lets not discuss at this point why they don’t just add that stuff back in and raise the prices. It simply doesn’t work, as with the supply and demand curve, raising fares can often reduce revenues (less people fly). So stop complaining all of you. If you don’t like sitting in cattle class, pay for business class. It’s really not that expensive. It equivalently less than what you paid for coach thirty years ago in today’s money, but with all the same services for free or wrapped up in the business class ticket. Stop sticking out your hands always wanting more.

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By DJ, May 1, 2010 at 5:31 pm Link to this comment
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The root of the problem is too many airlines, but then United’s woes will only worsen because they have too many planes. The solution is to drastically downsize fleets and cut all unnecessary short-haul routes. I hated United already, I will continue to do so. Avoid the “Big Four” (US Airways, United, Delta, American) at all costs, they are dinosaurs and will surely go out of business soon.

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By Samson, May 1, 2010 at 2:00 pm Link to this comment

Near as I can tell, the whole airline industry is based on making travel so miserable and awful for its customers that they almost, but don’t quite, swear never to fly on a crappy airline again.

I’m glad I don’t fly for business any more.  United and Continental deserve each other.  The two airlines I used to avoid like the plague whenever I could, now ‘united’ into one lousy company.

God have pity on anyone who has to fly with these jerks.

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