The Continental Airlines brand to disappear from the skies?

[marmar]

United, Continental boards reportedly approve merger
Announcement expected Monday, with Continental valued at $3.2 billion

By Christopher Hinton & Michael Kitchen, MarketWatch


LOS ANGELES (MarketWatch) -- The boards of Continental Airlines Inc. and United Airlines parent UAL Corp. have approved an all-stock deal to create the world's largest air carrier, with a formal announcement expected Monday, according to reports.

The terms of the merger reported Sunday would exchange 1.05 UAL shares for each Continental shares, a ratio that would value Continental at $3.2 billion, according to a Reuters report Sunday, citing unnamed sources familiar with the situation.

The new airline would operate under the United brand and be based in Chicago, where United has its headquarters, several reports said. Continental Chief Executive Officer Jeff Smisek would run the new company, the reports said, with Reuters adding that UAL chief Glenn Tilton would serve as non-executive chairman.

At the end of Friday trading, UAL shares sold for $21.60, while those of Continental closed at $22.35.

Assuming it clears regulatory hurdles, the new entity would replace Delta Air Lines Inc. as the largest airline on earth. Delta took that title when antitrust regulators approved its takeover of Northwest in 2008. .........(more)

The complete piece is at: http://www.marketwatch.com/story/united-continental-boards-reportedly-ok-merger-2010-05-02

[BeyondGeography]

1. With fares certain to go up, hubs to be closed and fewer flights

It sucks.

[marmar]

3. Yep. I think you can say goodbye to Continental's Cleveland hub....

..... and would United keep both Washington-Dulles and Newark as hubs?


Much the same fate that Cincinnati and Memphis are suffering from the Delta-Northwest amalgam.

[FarCenter]

7. If they keep both Cleveland and Chicago, one of them should usually be open...

Washington Dulles and Newark Liberty would sort of mirror LA and SFO on the west coast.

I't not clear whether they need to close any hubs.

Continental also uses Colgan, ExpressJet and CommutAir at Newark, while United uses GoJet, TransStates, and Mesa. It'll be interesting to see how the merged airline deals with the commuter airlines.

[FarCenter]

2. So Continental frequent flyer miles will soon start expiring?

An advantage of Continental was that they didn't expire miles.

[virgogal]

4. I still miss Eastern and Pan Am. Life goes on.

[begin_within]

5. They really move their tail for you.

[Sen. Walter Sobchak]

6. I can't think of a more worthless brand than United Airlines

"United Airlines" is synonymous with terrible service from belligerent assholes. Indeed their hiring process is designed to weed out people with any degree of compassion, professionalism or an IQ greater than 45.

I have fewer beefs with Continental but operating international routes with a fucking Embraer ERJ-135 is a joke. I just love flying to Guadalajara on this thing...

[Hawkeye-X]

8. Well, my dad just got me tickets for LAX this Aug using his mileage on United

Cost me $100 each for 2.

Normally costs about $250 each.

The LAX trip has been long planned for about 3 years - it is our 10th anniversary, and first honeymoon trip.

He has almost over 75,000 mileage racked up - my parents make an annual trip to Israel to visit my sister and her family there. They have it set up for September when my sister has her 4th child.

United is a major hub here - the entire terminal B at DEN is theirs.

Yeah, I agree United is pretty much worthless, much like their stupid idea - Ted, which costs them millions after it debranded it thanks to Frontier and Southwest.

[JCMach1]

11. Am Flying United this Summer Too...

It was about the $$$

[rsmith6621]

9. This Is Uniteds Way Of Destroying Two Airlines....

....Glenn Tilton has just about completed his final task before collecting his final check from UAL...this deal is designed to take down both carriers not make the WORLDS LARGEST AIRLINE....

[Sen. Walter Sobchak]

10. Tilton is worse than Frank Lorenzo

Just as evil, but stupid as a rock.