Expected Impact of United Merger

Expected Impact of United Merger

Cheap airplane tickets and cheap vacation packages are expected to become scarcer as a result of the merger between United and Continental Airlines.

The worlds new largest airline may impact fliers in the following ways:

Prices are expected to increase on routes where the airlines offered competing nonstop flights, such as Houston to Denver and Newark to San Francisco. Frequently, less competition results in higher prices.

Fees between the two airlines are similar. The biggest difference is that United charges $150 to change a ticket whereas Continental only charges $50 if the new departure time is within 24 hours of the original time. Otherwise, both airlines charge $150 for ticket changes.

Frequent flier miles programs will change since Continentals program has no expiration date, whereas Uniteds miles expire in 18 months, if no additional miles are added. No announcement has been made as to which plan the new United will follow, but many expect the expiring mileage plan to eventually be adopted.

Short term, travelers who belong to both United and Continental frequent flier programs will benefit since their miles will be merged, meaning that they will be closer to earning free tickets.

Few cities are expected to be dropped from the new Uniteds destination roster. The merger airlines largely complement each other with Continentals strong position on the East Coast, particularly in the greater New York area, and Uniteds focus on the West Coast and Chicago. Cutbacks are expected in overlapping hubs such as Cleveland, Dulles, and Washington.

Passengers will be able to fly to more destinations without having to switch airlines as a result of this merger. Passengers are more likely to be able to fly on a United jet going to China, Europe and Latin America.