Continental Airlines Rejects Merger Talks, Plans To Fly Solo
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Last Updated: April 28, 2008
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Continental Airlines has received the blessing from their board of directors
to continue to fly solo.
 For months, there has been speculation that if
Northwest and Delta were to merge and become the world's largest airline that
Continental would need to merge with another airline to remain competitive. On
Sunday, April 27, Continental elected to fly solo, which is good for Continental
and also good for America.
Mergers usually bring even higher airfares because there are fewer choices.
This move by Continental may also force American Airlines to rethink their own
options and also quash a future merger with US Airways. We do know that United
has also been talking to US Airways as a potential merger partner, and with
Continental's decision to fly as a stand-alone carrier this potential merger
looks strong.
US Airways has a strong Mexico, Central America and Caribbean route system,
while United does not. US Airways also flies to approximately three times more
destinations than United. Domestic-wise, US Airways has the New York City to
Boston and Washington (DC) shuttle service along with strong hubs in
Philadelphia and Charlotte. United largest and most profitable route is Asia.
As of today, we have six major legacy airlines serving America. A
Northwest-Delta merger and a United-US Airways merger would reduce the number of
legacy airlines to four.
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