Yet another airline merger was announced yesterday. That’s not really all that surprising. However, the fact that the merger involves two legacy carriers means the resulting changes to the industry could be that much greater in scale.
United and Continental announced they would merge yesterday. In a reportedly $3-billion deal, the two carriers announced they would merge under the United name and be based in Chicago. As a result of the merger, United will surpass Delta as the largest carrier and fly to 370 destinations in 59 countries, according to the Associated Press.
Though the deal has yet to receive approval by the Justice Department, the chances of it happening are good. The merger of United and Continental would likely mean many changes to ground support operations. As with most mergers, it will likely lead to capacity cuts and employee reductions.
What are your thoughts on the merger? What will it mean for the ground support industry? Do you think there will be more mergers in the future?
Please share your thoughts.