A discussion about the airline industry, airline employees, and all things related

Airline consultant Michael Boyd said, “It’s very clear that senior management wants to peddle it, and Tilton wants to engineer it into a merger.” 

Even one industry source has said that United Airlines has explored merger possibilities with both Delta Air Lines and Continental Airlines.  The merger possibilities for United are really in the air though.  Continental’s fleet, route structure, and employee structure would fit better into United’s structure, but Delta’s massive strangle hold on the southeast with their huge hub in Atlanta makes them a valuable option. 

But even if United and Continental or Delta merger together the Federal government has a track record in the airline industry of not approving mergers unless one company is in some serious financial trouble.  United tried unsuccessfully to merge with US Airways in 2001 when government officials denied their cash deal worth $4.3 billion dollars.  US Airways went on to merge successfully with America West several years later. 

So if United merged with Continental or Delta, what would the company look like?  What would happen to all the employees?  Which hubs would survive?  Would the companies remain separate or combine to take back the title of world’s largest airline title?  Let’s take an in-depth look at what would happen if United merged with each airline, Continental Airlines and Delta Air Lines.

United and Continental, A Possible Merger Worth Noting

Continental Airlines has had their fair share of bankruptcy action.  They spent most of the early nineties in protection.  They went through ten chief executive officers in just ten short years before Gordon Bethune came in and helped turn around Continental from worst in customer service, on-time performance, and employee relations to first in those areas in just a short period of time. 

Continental Airlines has recently become aggressive with the competition.  Continental has been ridiculing the competition over their lack of customer services on their aircraft and their attempts to cut costs by forgetting their employees.  Though Continental shed costs during their several sessions in bankruptcy, it has made them a leaner, more competitive airline.  They have been able to cut costs throughout their company.  They reduced their aircraft fleet age, streamlined their operating structure, and have improved employee relations again.  Continental has begun flying to destinations that people actually want to fly too.  They connect them through their hubs now instead of flying useless point to point routes that they only competed with themselves. 

All of these improvements has made Continental a better airline.  Just recently they won another year at the top with best business class and best North American Airline.