(Thumbnail Image: Artist Rendition/South Florida Business Journal)
BY KYRSTEN SKULBORSTAD
Parent companies of airline giants, United and Continental, have just approved a multi-billion dollar merger -- creating the world’s largest air carrier. And the legwork is just beginning.
Chicago’s WBBM has the details.
“The combined airlne will be called United, it will be based in Chicago, and be run by Continental CEO. The two carriers want to get more corporate travellers -- that’s where the real money is. This 3 billion dollar stock deal combines United’s strength in the Midwest, West coast and over the Pacific, with Continental’s presence in Texas, the East coast and routes to Europe and Latin America.”
Chicago’s WLS shares one businessman’s positive reaction to the mega-carrier’s new routes, but some remain skeptical.
JOHN NUGENT: “I'll probably fly United-Continental more just given that there will be additional destinations. Sometimes I fly places United doesn’t fly to. ... ”
JANET GENOT: “I'm not real sure about it. I think if it helps save customers some money when they're flying, I think it's ok. What I don't like is that it seems like everything nowadays is so expensive.”
While many Americans are concerned with rising ticket prices due to decreased carrier competition, The Guardian places the merger in an international context, reporting it...
“...will create a carrier dwarfing rivals on both sides of the Atlantic. The combined airline ... is forecast to have $30bn of annual revenue, carrying 144m passengers a year to 59 countries. It will be larger than Europe's top carrier, Air France-KLM...”
Just after the shareholder vote at United Airline’s Chicago headquarters, WGN caught up with UAL CEO, Glenn Tilton. He says everything is in place for a smooth transition, but points out one challenge airline employees will face.
GLENN TILTON: “The complexities come that in some of the other areas, such as the flight attendants, they’re represented by different unions. So the combined workforce will have to determine whom is going to represent them.”
And as far as official jobs figures go, both carriers have yet to comment. But analysts say, as with any intra-industry merger, some layoffs are to be expected.
So, how do you think the merger will affect those who fly the friendly skies?
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