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

The entire airline industry has gone merger crazy!  Chicago based United Airlines (UAUA) has been in talks with Houston based Continental Airlines (CAL) for a few weeks now.  Sources site that the processes are in the early stages but it isn't the first time that the two airlines have explored possible mergers.  Continental approached United during the last airline boom cycle before the Sept. 11 terrorist attacks but was rebuffed by management at United parent UAL Corp.

A United Airlines spokeswoman said the other day, "We don't comment on rumor or speculation."  But after months and months of talking about industry consolidation, CEO of United Airlines, Glenn Tilton has become very quiet in recent weeks.  

At United's management meeting yesterday Tilton said, "We are not waiting for opportunities to come to us, simply because we haven't identified to you which one works best." 

Back in the mid 1990's when the airline industry was starting to fly high, United ran a scenario to see which airline would fit best with them if industry merger mania spread.  Continental seemed to be the idea fit with them.  

Industry insiders are saying that a United-Continental merger would be a great fit with route networks combining Continentals strong Latin America and European connections with United's strong Asian routes.  

With all the merger mania going on, some experts see American to be eyeing Northwest because of their valuable Asian routes.  However I tend to shy away from that because American is still feeling the pain of purchasing Trans World Airlines back in 2001.  A merger that helped rid the industry of a defunk carrier but also helped lay off thousands of employees.  

Chicago Tribune 

United Airlines

Continental Airlines