And – and creating the world’s greatest airline out of this, what are the implications, then, total for the trade? And prices shouldn’t go up overall typically within the United States or overseas. Prices are going to go up someplace. There are simply too many airlines here competing for too little piece of the pie – items of the pie, as evidenced by the very fact they have been shedding cash for thus a few years. However, actually, in places where those two may need been the one two competing, they – they – they will go up, until – you recognize, happily, we have – now we have these – these – these pretty successful and worthwhile, in some circumstances, like Southwest, lower-price airlines, who search for unusually high fares between metropolis pairs because of the lack of competition, and go in. You realize, frequent flyer members in a single airline can use their miles on the other. The merged airline will fly beneath the title United, however will use Continental’s brand and be run by Continental’s CEO, Jeffery Smisek. United’s CEO, Glenn Tilton, mentioned the new airline will probably be stronger than both of the existing carriers.

There shall be some hiccups in the beginning.

I feel, at the tip of the day, you are going to have three, perhaps four, but I believe three major airlines in the United States, and then three or 4 so-value low-value – so-called low-cost carriers. And if they will avoid duplicating employees, routes, if they can synch their flights better, so that extra people discover them a handy airline to fly, if they could only have one promoting finances, one advertising funds, one frequent flyer program, they will – they’ll notice savings. After weeks of negotiation, United Airlines introduced it’s going to purchase Continental in a deal totaling greater than $3 billion. There might be more seamless service. He will function non-govt chairman. I will function CEO. United will contribute six directors to the mixed board. And Glenn and i shall be on the board. There shall be some hiccups in the beginning. So, there – there shall be a couple of hiccups. Nonetheless, definitely, will there will likely be some frontline layoffs as effectively. So, passengers who have already flown those airlines will not discover an enormous difference, if these two airlines can accomplish this merger, this coming-collectively, perhaps in addition to Delta and Northwest did in the last two years. Well, whenever you have fewer airlines, you have less competition.

Southwest Airlines Fares

Nicely, they’re – they serve also fifty nine nations. Nicely, it isn’t going to be an enormous upheaval, as a result of each airlines have been members of the identical alliance, the OnePass alliance – excuse me – Star Alliance. I – I think a lot of the layoffs will come from mid-management and administration, the place you have got folks doing the same job at both airlines. It will be primarily based in Chicago, United’s hometown, and could have a commanding place in different major U.S. The brand new United Airlines will surpass Delta Air Strains in dimension, making it the world’s largest carrier flying to 370 destinations. Now: an airline mega-merger, and what it means for travelers and the enterprise of flying. As a result of the airlines did not compete on the same routes, typically talking, cities should not going to lose an airline. Discover: Transcripts are machine and human generated and evenly edited for accuracy. Obviously, there aren’t going to be as many roles in the combined airline as there are in the two standing alone now. Rudy Maxa, why does this merger make sense for these two airlines?

Collectively, the 2 airlines lost nearly a billion dollars last yr. By consolidating, they say they may save $1 billion to $2 billion a yr by 2013. And that would mean layoffs. We heard Kwame also say there could be layoffs. We heard Kwame in that report say 370 destinations. NewsHour correspondent Kwame Holman begins with some background. However, if it may be performed over time as Delta and Northwest did it, as smoothly, there shouldn’t be huge disruptions. And I’m alleged to be a man who travels on a regular basis and is aware of about these items. There will probably be individuals who go in the big airports like LAX or JFK to the unsuitable terminal for a while. But I don’t assume it is going to be huge, because they’re probably not slicing that many flights. So, Continental will contribute six directors to the combined board. So, it’s going to profit that new airline, still to be known as United, after all. So, there’s a little bit of a correcting mechanism within the model proper now.