Jun 19 2008
United and Continental Join Forces - Will Hawaiian Go Next?
Unable or unwilling to reach terms for a complete merger of the two companies, United Airlines and Continental Airlines today announced a comprehensive plan for global cooperation. This agreement allows the companies to join forces without the the anti-trust issues associated with a merger.
On the surface this includes:
- Continental to join United’s Star Alliance
- Code-sharing agreement
- Shared lounges
- Combined facilities utilization
- Shared information technology
- Shared procurement
Not mentioned, but likely to be included:
A reduction in competitive services. This could reduce flights between the mainland and Hawaii and further raise fares.
My prediction:
It’s also a step towards Continental acquiring Hawaiian Airlines. I have long thought this would occur following the consolidation among the larger players.
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