And – and creating the world’s largest airline out of this, what are the implications, then, general for the industry? And prices should not go up total usually in the United States or overseas. Costs are going to go up somewhere. 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’ve been shedding money for so a few years. But, certainly, in places the place those two might need been the only two competing, they – they – they may go up, unless – you know, happily, now we have – we’ve got these – these – these fairly successful and worthwhile, in some circumstances, like Southwest, lower-cost airlines, who look for unusually high fares between metropolis pairs because of the lack of competition, and go in. You understand, frequent flyer members in one airline can use their miles on the opposite. The merged airline will fly beneath 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 shall be stronger than either of the present carriers.

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I believe, at the end of the day, you are going to have three, maybe four, but I believe three major airlines within the United States, after which three or four so-value low-price – so-called low-price carriers. And if they will keep away from duplicating workers, routes, if they’ll synch their flights better, in order that extra folks find them a handy airline to fly, if they might solely have one promoting price range, one marketing price range, one frequent flyer program, they will – they may realize savings. After weeks of negotiation, United Airlines introduced it’ll buy Continental in a deal totaling greater than $three billion. There shall be more seamless service. He will function non-govt chairman. I’ll function CEO. United will contribute six directors to the mixed board. And Glenn and i will probably be on the board. There might be some hiccups to start with. So, there – there will likely be a couple of hiccups. However, definitely, will there will probably be some frontline layoffs as properly. So, passengers who’ve already flown those airlines will not notice an enormous difference, if those two airlines can accomplish this merger, this coming-together, maybe in addition to Delta and Northwest did within the last two years. Effectively, every time you’ve fewer airlines, you may have much less competitors.

Well, they’re – they serve additionally 59 nations. Nicely, it isn’t going to be an enormous upheaval, as a result of both airlines have been members of the identical alliance, the OnePass alliance – excuse me – Star Alliance. I – I believe many of the layoffs will come from mid-management and management, the place you could have people doing the same job at each airlines. It will be primarily based in Chicago, United’s hometown, and can have a commanding position in different main U.S. The new United Airlines will surpass Delta Air Traces in dimension, making it the world’s largest provider flying to 370 destinations. Now: an airline mega-merger, and what it means for travelers and the business of flying. Because the airlines did not compete on the same routes, typically talking, cities usually are not going to lose an airline. Notice: Transcripts are machine and human generated and evenly edited for accuracy. Obviously, there should not going to be as many roles within the mixed airline as there are in the 2 standing alone now. Rudy Maxa, why does this merger make sense for these two airlines?

Together, the two airlines lost almost a billion dollars final 12 months. By consolidating, they are saying they are going to save $1 billion to $2 billion a yr by 2013. And that might 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 can be accomplished over time as Delta and Northwest did it, as easily, there should not be huge disruptions. And I’m alleged to be a man who travels all the time and knows about these items. There shall be people who go – www.flygofirst.com – in the massive airports like LAX or JFK to the incorrect terminal for a while. But I do not suppose it will likely be massive, as a result of they’re not really chopping that many flights. So, Continental will contribute six directors to the combined board. So, it’s going to benefit that new airline, nonetheless to be referred to as United, in fact. So, there’s a bit of a correcting mechanism within the mannequin proper now.