What is the job impact of the announced merger between Continental and United? At first ogle, the effects of the merger between United Airlines and Continental Airlines will impact more than the cities of Chicago and Houston where each company is headquartered. Given that it was agreed that the company will sustain the United name (since it is more widely known in the international market) it is likely that the managers of Continental Airlines who are currently located in Houston will be moved to Chicago. It is estimated that over 800 jobs could be relocated to United’s Chicago headquarters. In this case, Houston’s loss of jobs will be Chicago’s acquire.
Cleveland, Ohio’s Hopkins International Airport may also be impacted by the merger. The Ohio airport is currently a hub for Continental Airlines. However, nearby airports in Newark and Chicago are also hubs. This could attach Cleveland Hopkins International Airport at risk for losing its region as a hub since it is the smallest of the three airports.
Cleveland Mayor Frank Jackson was hastily to point out, “Although we’re the smallest of all the hubs (and) we’re in proximity to Chicago, we do have a titanic ability to grow here in Cleveland, where they’re comely grand microscopic in terms of physical capacity to grow in all these major hubs.”
Consumers are also disquieted that the merger will impact them. They horror that the merger may result in fewer flights as United and Continental streamline overlapping routes. Fewer routes could mean an increase in both fares and fees. However, consumers will be jubilant to learn that Continental is required to lease gates at the Newark airport to Southwest Airlines as fragment of the merger deal. Continental has dominated flights in and out of the Newark airport. This will allow Southwest to earn a foothold into the unique York market where they currently only operate a few flights from La Guardia airport. This could plot off a fare war in this market. Consumers should be wary though as airlines continue to merge. Consumers only have four major carriers to settle from: American, Delta, Us Airways, and United. Since the Delta-Northwest merger, air fares have increased. It is reasonable to recall this trend will continue with the Continental and United Airlines merger.
It remains to be seen what the trusty impact of this merger will be. Passengers will not inspect a noticeable dissimilarity immediately. Continental customers will continue to spend Continental.com and check in at Continental note counters. United customers will do the same. Both Continental and United agree that the process of merging the two companies will be insensible. It is expected to remove 12 to 18 months to complete. There will definitely be an impact on the cities of Houston, Chicago, Cleveland, fresh Jersey, and recent York.
