United and Continental merge to create world's biggest airline (unions fear job cuts)

Guardian ^ | 09/17/2010 | Andrew Clark

[SeekAndFind]

Airlines' shareholders approve tie-up, as unions fear job cuts and customers mourn end of United's tulip logo

The world's biggest airline got clearance for take-off today as shareholders of United Airlines and Continental Airlines backed a multi-billion dollar merger that will create a carrier dwarfing rivals on both sides of the Atlantic.

The combined airline, which will adopt United's name, 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, and will overtake its US rival, the newly merged combination of Delta Air Lines and Northwest.

Investors met to vote on the tie-up at twin meetings at Continental's headquarters in Houston and at United's base in Chicago. At Continental's gathering, 98% of votes were cast in support of the share-swap deal, despite concerns among unions about job losses, plus opposition in some circles to the abandonment of United's signature "tulip" logo.

"We are grateful for our stockholders' strong vote of confidence in this merger," said Continental's boss, Jeff Smisek, who will be chief executive of the combined company. "Our stockholders recognised the value of bringing together Continental and United to create a platform for increased profitability and sustained long-term value".

Hampered by over-capacity, a tough economic outlook and fierce price competition, airlines in the US have struggled to make sustainable profits. Several top carriers, including United, filed for bankruptcy protection early in the past decade as they suffered slumps in traffic following the attacks of September 11, 2001.

"It's a mature market and there are too many costs in the system given the level of revenue," said Basili Alukos, airlines analyst at research firm Morningstar in Chicago. "The combined network of United and Continental is very complementary and should work well as a whole".

[SeekAndFind]

I just learned also that Atlanta’s Hartsfield Airport ( Not O’ Haire, Not Dallas, Not Denver, Not JFK, not LAX ) is the BUSIEST and LARGEST airport in the USA.

Atlanta is also the busiest airport by passenger traffic in the WORLD.

[wk4bush2004]

“Our stockholders recognised the value of bringing together Continental and United to create a platform for increased profitability and sustained long-term value”

Translation: We want to raise fares even higher and add more fees, so you get even LESS service for FAR MORE MONEY!!!!!

Here in southwest Missouri, we have to flock to places like Kansas City and St. Louis (and sometimes fly out of Branson IF the fares are reasonable and the schedules work) to fly because the fares out our local airport, Springfield, are just plain outrageous!

[equalitybeforethelaw]

Hopefully they downsize the number of gay male stewards and focus on hot looking honies.

[Moonman62]

I remember when Texas Air (mainly composed of Continental and Eastern) was the largest airline in the free world. It lasted about a year.

[Moonman62]

Translation: We want to raise fares even higher and add more fees, so you get even LESS service for FAR MORE MONEY!!!!!

That sounds a lot like the government. Pay more, get less.

[married21]

I think the new entity should be called ContinU.

[Wurlitzer]

I usually don't like to see people in the private sector lose their jobs but in the case of airlines, I cannot shed a tear.

After 26 years of 80-90% travel and some years 120 flights, I have zero compassion for anyone from the ticket counter, “Security” (no longer private), gate agents, trolley dollies (flight attendants), baggage handlers and agents...

6 years ago, I stopped traveling by air for any reason after some, rhymes with witch, told me that we had no choice but to fly. That was the last flight I ever took.

I found I can do a trip requiring 10 hours of driving, each way, meet with the customers, then return home on MY schedule not the airlines, and make it home in less time.

[Nick Danger]

I think the new entity should be called ContinU.

I dunno, I like UnContinent.

[married21]

LOL!

[Myrddin]

I drive to San Diego from Pocatello with my "stuff" including motorcycle on a trailer. That takes care of local transportation costs (no car rental) and I can take as much "stuff" as I want. It's a 16 to 18 hour drive...depending on traffic through SLC and Las Vegas. Picking the right day and time of day to traverse those cities helps. My best time ever was 14 hours, 20 minutes door to door for the 924 mile run. That's wall clock time. One driver. Fuel/bathroom breaks included.

[Spktyr]

18 hours, 36 minutes, Dallas to Los Angeles in a car.

I’ve actually done it faster on a bike, though. 15 hours, ~26 minutes.

[USNBandit]

When United came out with TED the guys were joking that it would be easy to remember TED because is was the end of United.

[Myrddin]

Quite a run. My long run was Birmingham, AL
to Salt Lake City, UT. 1800 miles, 46 hrs
wall clock time door to door. I was
escaping Hurricane Ivan and trying to
get to SLC in time for the Crossroads
gun show. In had already worked 14
hour day when I arrived at the hotel to
find instructions directing me to a
hurricane shelter at 7 PM. By 10:30 I
was picking up the rental car. First
stop at Clarksville, TN at 3:30 AM. Back
on the road at 9 AM. Next stop Grand
Island, NE. Resumed about 8 AM. Rolled
into Hertz at SLC airport at 8:20 PM. My
wife picked my up at 8:30. We got a
room in Draper.