Will the United - Continental merger be good or bad for consumers?

Lifelike

United and Continental Airlines are to merge! The new company will be branded United Airlines, but will use the Continental logo and livery. It will also create the world 's largest airline.

I'm happy about this tie-up, but I hope it won't drive up fares. :pac:

http://news.sky.com/skynews/Home/Business/United-Airlines-And-Continental-Confirm-Merger-To-Create-Biggest-Global-Carrier/Article/201005115624227?lpos=Business_First_Buisness_Article_Teaser_Region_0&lid=ARTICLE_15624227_United_Airlines_And_Continental_Confirm_Merger_To_Create_Biggest_Global_Carrier

http://www.unitedcontinentalmerger.com/

Plowman

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Lifelike

Plowman wrote: »

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The Madrid-Washington should be safe, but when you point it out, one thing that isn't safe is the Aer Lingus-United interline agreement and the Aer Lingus-United codeshare on transatlantic routes from Dublin, as United will now take over Continental's Dublin-Newark service.

Andrew33

Let's wait and see

Eventually it'll mean less diversity at EIDW which has to be bad for us standing at the end of "10"

alpha2zulu

Let's wait and see

Andrew33 wrote: »

Eventually it'll mean less diversity at EIDW which has to be bad for us standing at the end of "10"

United have never flown there own metal to Ireland as far as I know. I think the only consumers that will benefit will be top tier frequent flyers who I'm sure will have more earn and burn opportunities.

For Joe Bloggs, its unlikely it can be a good thing. More to the point, the best consumers can hope for is no major capacity cuts/fare rises. However from the airlines point of view, its a move thats badly needed. Consolidation is the name of the game at the moment.

In terms of Ireland, I guess EI will be watching things very closely, a) In terms of the IAD-MAD aircraft and b) Implications for the EI/UAL codeshare on North American routes. Will Star alliance come back on the EI radar in an effort to keep UAL/CON on their side, its very hard to tell.

As an aside it will be a shame to see the United branding in its current form disappear. The new branding of the United Airlines font and the Continental globe looks cheap and nasty compared to what its replacing.
The UAL homepage gives you an idea of whats ahead http://www.united.com/

From being stuck in the UAL ORD terminal for hours this past St.Stephens day, it was really impressive to see how much animation design work had gone into any United ads or branding in the terminal or even at every main page on the website. The Continental livery could do with a major shake up before the United fleet starts heading for the paint shops.

On a broader level, its very odd to see how in the US market, there has been nothing but capacity cuts and fare increases by on large for the past 10 years amongst the legacy carriers while the EU has seen phenomenol growth. Even 1 hour flights on the so called loco's in the states aren't half as cheap as what we have become used to on this side of the pond from EI/EZY/FR etc. Given that they have much lower airport charges by on large, and no travel taxes, its hard to see why so many of the US carriers are in such a mess.

Plowman

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alpha2zulu

Let's wait and see

Plowman wrote: »

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Totally agree, the mystery is why the US legacy carriers just seem to be lurching from crisis to crisis/chapter 11's, by on large in markets with little alternatives to air travel and huge population densitys and much of the same ancillary revenue vehicles we have in Europe. The new Delta which seems to be the benchmark for the CON/UAL venture, were still reporting colossal losses recently from what I remember. Even with UAL, I know a large chunk of previously 737 operated flights are now covered by the United Express subsidarys with CRJ 700's and the like.

Even just looking at the Southwest site now, their main special offer is a one way fare of $69 from Philly to Boston. A million miles from the sort of offers from the EU loco's over a similar disatance. Is it a case that old labour contracts/restrictive work practices are strangling their finances or is there some other factor not mentioned here yet?

cson

The one thing that got me when I was in the US last year was how fecking expensive the internal flights. Having been reared on Ryanair, it was a sobering experience to have to pay serious dollars to fly. Although FR/EI have been raising fares I have noticed this year.