Mikeonbehind the curtain

Surprise Surprise - Continental and United "Talking" again

The New York times is reporting that Continental Airlines is reopening merger talks with United. As we know, United has also allegedly been speaking with US Airways. But as we have all commented on our podcast, Continental has long been the favored partner.

Continental Airlines has reopened merger talks with the UAL Corporation, the parent company of United Airlines, people briefed on the matter told DealBook on Thursday.

The talks are in early stages and may quickly fall apart, these people cautioned.

As I mentioned in a previous post about their hub locations - my opinion has been that United's retreat from the New York market back in 2006 was to smooth any regulatory road blocks when the two airlines finally merge.

If CO and UA do merge, it leaves US in a precarious position as a pretend low cost carrier, with pseudo first class, high employee costs, and from our perspective subpar service. Is there room for a distant fourth place behind the newly merged Delta, the possible Unitental, and American? I doubt it.

 

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Comments

#1
Matthew April 15, 2010 at 06:39 pm

CO-UA marriage is going to happen.

US-AW divorce? Maybe.

#2
Grace April 18, 2010 at 09:34 pm

I just wish they would either do something or stop the rumor mill.

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