Airline Industry Mergers: Background & Issues

Airline mergers do not always go as planned and/or realise their stated goals. The stockholders, employees, customers, and served communities often have competing interests in the merger process. Some stakeholders may support a merger at the outset of discussions, but change their mind over time. This book explores the impacts and issues of a United-Continental merger from a congressional perspective. Several major issues associated with the merger are discussed, including its potential effect on airfares, its effect on routes and services, whether employment is likely to increase or decrease, whether existing United-Continental airport hubs will retain their status in the future, how the United-Continental merger will affect further consolidation in the U.S. airline industry, and whether the merger will have a significant impact on industry profitability. See more