Continental & United to Merge??

[bossreggie]

I wonder what this will mean for Australia?


Business, financial, personal finance news - CNNMoney.com

 

[NYCguy]

There's no "??" to this deal anymore, since it seems that they have solved the stock-swap ration issues that clouded negotiations last week.

What does this mean for Australians? I would suggest it means a stronger United Airlines. What the implications of that will be remains to be seen. UA is making a motza flying freight across the Pacific every day (and the occasional passenger too), so I doubt much will change on the service-frequency front.

 

[jsd]

Got an email about it this morning:


Dear jdevereux3,


We are proud to share some exciting news with you.
This morning, Continental announced that we have signed a definitive merger agreement with United Airlines. We plan to create a world-class airline with tremendous and enduring strengths.
Combined, Continental and United will offer the industry’s leading loyalty program, providing vast opportunities for members to earn and redeem miles with us and on our Star Alliance partners. Should you achieve Elite status, you will enjoy even more benefits such as upgrades and priority airport services. We will continue to provide you with the excellent and consistent service you value and have come to expect from us, across a much broader network with an unparalleled global reach.
Since our transition to Star Alliance last year, we’ve worked closely with United and are confident this combination will build upon the partnership we already have in place.
While this announcement doesn’t immediately affect your OnePass account or the travel plans you have with Continental, we know you may have questions about the proposed merger. We’ll keep you informed throughout the planned integration process and also encourage you to visit unitedcontinentalmerger.com, our dedicated joint merger website, for detailed information as well as ongoing updates.
On behalf of Jeff Smisek and the entire Continental team, thank you for being a loyal OnePass member. We look forward to welcoming you aboard your next flight.
Sincerely,

Mark Bergsrud
Senior Vice President
Marketing Programs and Distribution



Josh

A little bit more info here: unitedcontinentalmerger.com

 

[UP4014]

Today's SMH has an ad in the front section with a drawing of a plane with the United name along the flank as they do with the Continental tail logo.

Can only be good for Australia, strong United with wider reach.

Virgin should be concerned, not that they will be put out of business but they will likely feel the pressure first.

 

[anat0l]

Virgin should be concerned, not that they will be put out of business but they will likely feel the pressure first.

Concerned yes, as should Qantas, but why would Virgin feel the pressure first?

Everyone is just going to know that the field is now a little denser (assuming that CO traffic adds a bit more to UA's traffic on the Trans-Pacific), so everyone better keep on their toes.

 

[markis10]

It just means we have one less US airline servicing Australia and of the two left, one is a little bit stronger as a result.

 

[anat0l]

It just means we have one less US airline servicing Australia and of the two left, one is a little bit stronger as a result.

Sorry, still confused.

There are only 4 airlines that directly serve AU/US routes - QF, VA, UA and DL. None of them will disappear after the merger. UA might be a bit stronger but that is all. Everyone is seeing this and needs to respond appropriately.

Well, we at least agree that UA should be a little stronger on the Trans-Pacific. NZ might be interesting (not direct but still some appreciable traffic from AU, especially for *A).

 

[markis10]

Sorry, still confused.

There are only 4 airlines that directly serve AU/US routes - QF, VA, UA and DL. None of them will disappear after the merger. UA might be a bit stronger but that is all. Everyone is seeing this and needs to respond appropriately.

Well, we at least agree that UA should be a little stronger on the Trans-Pacific. NZ might be interesting (not direct but still some appreciable traffic from AU, especially for *A).

CO fly into CNS ex Guam (CO902), which is part of the widely spread United States, and I did say US airlines, not mainland flights! Should of said three left, forgot about Hawaiian

CO is actually the single largest employer on Guam as a private enterprise, as they hub there, so the merger is getting a lot of interest.

 

[bossreggie]

I'd like the good old days when CO and UA used to do the Trans Tasman. I'm not sure if this is going to happen though. I wonder if CO will route their current flights into NAD onto Australia?

 

[wtolmie]

I'd like the good old days when CO and UA used to do the Trans Tasman. I'm not sure if this is going to happen though. I wonder if CO will route their current flights into NAD onto Australia?

Been a long time since we saw a Continental DC-10 in Sydney.. Back then we even had Pan Am flying.. took the slow route SYD-AKL-HNL-LAX on a 747-200 Clipper.. 1980 from memory..

 

[bossreggie]

I remember the CO 747 200 0r maybe 300.. AKL - SYD. I got my first ever upgrade from J to F and I was 17 years old! Awesome!

 

[markis10]

Been a long time since we saw a Continental DC-10 in Sydney.. Back then we even had Pan Am flying.. took the slow route SYD-AKL-HNL-LAX on a 747-200 Clipper.. 1980 from memory..

In someways what old is new, CO's rights to fly to SYD were sold to Northwest, now Delta as a result of a merger, PanAm sold its rights to United, now merging with CO

 

[Andyzx]

Yes it would be nice to see the CO tail flying ex AKL. Bring back the Coors beer i say:mrgreen:

 

[bossreggie]

I remember that!!

 

[UP4014]

Sorry, still confused.

There are only 4 airlines that directly serve AU/US routes - QF, VA, UA and DL. None of them will disappear after the merger. UA might be a bit stronger but that is all. Everyone is seeing this and needs to respond appropriately.

Well, we at least agree that UA should be a little stronger on the Trans-Pacific. NZ might be interesting (not direct but still some appreciable traffic from AU, especially for *A).

I think Continental flys or flew into Cairns direct from the US port of Guam, or maybe near by.

So that makes 5 doesn't it?

 

[UP4014]

Concerned yes, as should Qantas, but why would Virgin feel the pressure first?

As the small carrier on the route VA counts on being the percived cheap and fresh to attract custom. United is cheaper than Qantas so if a price war breaks out over any length of time then VA will have slim margins indeed.

 

[serfty]

... So that makes 5 doesn't it?

No!

Note the qualification:

... directly serve ...

 

[dajop]

As the small carrier on the route VA counts on being the percived cheap and fresh to attract custom. United is cheaper than Qantas so if a price war breaks out over any length of time then VA will have slim margins indeed.

I guess that is why VA has entered into the codeshare arrangements with DL, essentially three predominant players on SYD-USA (QF, UA & DL/VA) and four for other cities in Aus (ie NZ can compete with UA & DL SYD services from MEL, BNE, PER & ADL). One thing VA has over UA is domestic feed and direct flights ex-BNE/MEL which would help at the pointy end.

 

[UP4014]

No!

Note the qualification:

Last time I looked Guam was part of the US. (although in Micronesia it's a US held territory and is in the US census)

There is also Hawaiian isn't there, or is Hawaii not part of the US any more.

So that's actually 6 directs from the US to Aus.

 

[Dee Thom]

I guess that is why VA has entered into the codeshare arrangements with DL, essentially three predominant players on SYD-USA (QF, UA & DL/VA) and four for other cities in Aus (ie NZ can compete with UA & DL SYD services from MEL, BNE, PER & ADL). One thing VA has over UA is domestic feed and direct flights ex-BNE/MEL which would help at the pointy end.

Plus DL's wide range of onward flights in the U.S. and through to Europe/England etc.,which gives another European approach, using VA
Was interested to read Brett G's last push for Virgin with a cross trench deal with Air N.Z. including F/F benefits.................

Cheers Dee