Moving into position
Wednesday, April 16, 2008
BY JOSEPH R. PERONE
Newhouse News Service
The Delta-Northwest merger won't be the only airline deal to take off this year.
Widely reported to be in merger talks for months, Continental Airlines and UAL, parent of United Airlines, could be on deck.
Widely reported to be in merger talks for months, Continental Airlines and UAL, parent of United Airlines, could be on deck.
UP IN THE AIR
It won't be entirely clear how a merger of Continental and United will affect consumers until a deal emerges. However, in broad terms, customers can expect changes in the fares they pay and less service to out-of-the-way cities.
Passengers can expect fewer nonstop flights, fewer routes served and higher ticket prices on routes with less competition, said Harlan Platt, a finance professor at the business school of Boston's Northeastern University who follows the airline industry.
It won't be entirely clear how a merger of Continental and United will affect consumers until a deal emerges. However, in broad terms, customers can expect changes in the fares they pay and less service to out-of-the-way cities.
Passengers can expect fewer nonstop flights, fewer routes served and higher ticket prices on routes with less competition, said Harlan Platt, a finance professor at the business school of Boston's Northeastern University who follows the airline industry.
"With fewer carriers, fewer seats and fewer planes, there will be a dramatic increase in fares," he said. "Otherwise, the airlines can't survive."
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