Continental and United agree to merge.


The Houston Chronicle is reporting that Continental and United have agreed to merge.  The merger was approved by both companies respective board of directors and is supposed to be announced tomorrow morning.

As a loyal flyer of both I'm truly sad to see this happen.  While the big-wigs want to tout consolidation as neccesary, it is never good from a consumer standpoint as it reduces competition. 

The link toe the Chronicle article is here.

We'll see what the details are tomorrow, but this is definitely some sad news.


Ryan May 3, 2010 at 02:21 am

Any other country you know of have 10 domestic carriers?

Fozz May 3, 2010 at 07:20 am

@Ryan: To simply reference the number of carriers is rather short-sighted. Sure, we have a number of carriers, but most of them don't compete with each other outside of individual markets. After this merger, there will be three key players (UA/CO, DL and AA). Yes, we have US, WN and the likes, but those are all niche carriers with limited scope.

The size of our country justifies the larger number of carriers. Unlike Europe or Asia, we don't have a train infrastructure to offload airline traffic. Few other countries are as physically large and with a population so distributed as the US.