State of the Airlines

Friday, September 08, 2006

NEWS: Fine...Let's Talk About United and Continental

Everybody's buzzing about rumors of a merger between United Airlines and Continental Airlines so I will weigh in too. Simply put, I think its a bad idea for Continental. Yes, in terms of routing structure the two airline look complimentary. But I think United would simply be a burden on Continental. United still brings a load of problems despite their supposed recovery. Continental on the other hand is managing fairly nicely on their own. One has to admit that United's international routes are a tempting target. I just think those international routes come with too much baggage attached.

One other note. Naysayers to the merger rumors also point out the difficulties of trying to combine unions and its true this can sap the energy in an organization. But America West and US Airways are showing that it is possible and perhaps even a little easier given the increased leverage airlines have in negotiating with the unions.

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