And – and creating the world’s largest airline out of this, what are the implications, then, overall for the industry? And prices shouldn’t go up total generally in the United States or overseas. Prices are going to go up somewhere. There are simply too many airlines right here competing for too little piece of the pie – items of the pie, as evidenced by the very fact they’ve been losing cash for therefore many years. But, actually, in places where those two might need been the only two competing, they – they – they’ll go up, unless – you already know, thankfully, now we have – we now have these – these – these pretty profitable and profitable, in some cases, like Southwest, decrease-value airlines, who look for unusually high fares between city pairs due to the lack of competition, and go in. You already know, frequent flyer members in a single airline can use their miles on the other. The merged airline will fly below the identify United, but will use Continental’s emblem and be run by Continental’s CEO, Jeffery Smisek. United’s CEO, Glenn Tilton, stated the new airline will be stronger than both of the prevailing carriers.

So, there – there might be just a few hiccups.

I think, at the tip of the day, you’re going to have three, possibly 4, but I believe three major airlines within the United States, and then three or four so-value low-value – so-known as low-value carriers. And if they’ll keep away from duplicating employees, routes, if they’ll synch their flights higher, in order that extra people find them a handy airline to fly, if they may solely have one promoting finances, one advertising and marketing price range, one frequent flyer program, they may – they may realize savings. After weeks of negotiation, United Airlines announced it’s going to buy Continental in a deal totaling more than $3 billion. There will probably be more seamless service. He will serve as non-government chairman. I’ll function CEO. United will contribute six directors to the combined board. And Glenn and that i will probably be on the board. There will probably be some hiccups to start with. So, there – there might be just a few hiccups. Nevertheless, certainly, will there shall be some frontline layoffs as effectively. So, passengers who have already flown those airlines won’t discover an enormous difference, if these two airlines can accomplish this merger, this coming-collectively, maybe as well as Delta and Northwest did within the final two years. Effectively, every time you have fewer airlines, you might have less competition.

Properly, they’re – they serve also fifty nine countries. Properly, it’s not going to be a huge upheaval, as a result of both airlines have been members of the same alliance, the OnePass alliance – excuse me – Star Alliance. I – I believe most of the layoffs will come from mid-management and administration, where you might have folks doing the same job at each airlines. It is going to be primarily based in Chicago, United’s hometown, and could have a commanding position in different major U.S. The brand new United Airlines will surpass Delta Air Lines in dimension, making it the world’s largest carrier flying to 370 locations. Now: an airline mega-merger, and what it means for travelers and the enterprise of flying. Because the airlines did not compete on the identical routes, typically talking, cities are not going to lose an airline. Notice: Transcripts are machine and human generated and calmly edited for accuracy. Obviously, there are not going to be as many roles in the mixed airline as there are in the 2 standing alone now. Rudy Maxa, why does this merger make sense for these two airlines?

Collectively, the 2 airlines misplaced virtually a billion dollars last 12 months. By consolidating, they are saying they are going to save $1 billion to $2 billion a 12 months by 2013. And that would imply layoffs. We heard Kwame also say there may very well be layoffs. We heard Kwame in that report say 370 destinations. NewsHour correspondent Kwame Holman begins with some background. But, if it may be finished over time as Delta and Northwest did it, as easily, there shouldn’t be monumental disruptions. And I am purported to be a man who travels on a regular basis and knows about these items. There can be people who go in the big airports like LAX or JFK to the unsuitable terminal for a while. However I don’t assume it will likely be massive, as a result of they’re probably not slicing that many flights. So, Continental will contribute six directors to the mixed board. So, it’s going to benefit that new airline, still to be referred to as United, in fact. So, there is a little bit of a correcting mechanism within the mannequin proper now.