Travelers were concerned about future availability of cheap airplane tickets and/or cheap vacation packages at Clevelands Hopkins International Airport as a result of the pending merger between United Airlines and Continental. Many feared that the combined airline might no longer treat Cleveland as a hub and substantially reduce flights out of this city.
As part of a deal to complete the pending merger, United has promised the state of Ohio to keep flying at least 90 percent of the two airlines current combined flights out of Clevelands Hopkins Airport for the next two years and to maintain hub-operational workforce levels for at least five years.
Failure to live up to this agreement will result in United having to pay the city of Cleveland up to $20 million in damages. In return for Uniteds commitment, Ohio has agreed to end an investigation by Ohios Attorney General into the mergers expected impact on the airport and state.
The merger has passed Justice Department review as well as receiving stock holders approval. The only remaining task is for the airlines to gain approval of their unions.
In response to concerns about future airport service raised by pending mergers, airlines have promised states in the past to maintain service at specific airports. What makes this agreement unusual are the specific penalties and service levels that have been publicly disclosed in this agreement.
Continental and United were responsible for almost 71 percent of the passenger traffic at the Cleveland airport in 2009.
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