This is good news. It’s better than Continental and United merging. It means your points can be used to get to more places (with the potential for less layovers) and you have access to more airport lounges all without the consolidation of flight segments that usually happen with a merger. It’s an unexpected gem amid all the cost cutting and ala carte pricing we’ve been pummeled with in the past 6 months.
If you fly either airline you will enjoy the flexibility of the many more airports available to you since every Continental hub can be considered a United hub and vice versa – assuming it gains regulatory approval.
The email follows in all its entirety. Have an excellent weekend!
Dear Mr. point man,
As a valued Mileage Plus member, we wanted you to be among the first to hear that Continental and United today announced plans to cooperate globally, linking our networks and services worldwide to deliver new benefits to you. In addition, Continental plans to join United in the Star Alliance®, the most comprehensive airline alliance in the world.
Once implemented, this new partnership, will easily enable you to take advantage of the resources of both airlines to enhance your overall travel experience, and receive more value from your Mileage Plus membership.First and foremost, this partnership will include new frequent flier reciprocity that will enable you to earn miles when flying on either airline and redeem awards on both carriers. Travel on either carrier will count toward earning elite status. Similarly, members of either airline’s airport lounge program will have access to both Continental’s Presidents Club network and United’s Red Carpet Club® lounges.
Second, together with Continental, we will be able to offer you a more comprehensive domestic route network and together with our Star Alliance partners, greater choice of service throughout the entire world.
Starting in the U.S., you are going to see United and Continental develop extensive code-sharing that will facilitate travel whenever your itinerary involves both carriers. We will be able to provide you with a coordinated process for reservations/ticketing, check-in, flight connections and baggage transfer.Internationally, Continental and United will establish joint ventures that will allow us to cooperate with each other and with other Star Alliance airlines throughout the world. These joint ventures will enable us to provide you with highly competitive flight schedules, fares and service to more destinations than we do today.
In short, once regulatory approval is obtained, this new partnership between United and Continental will expand your choice of flights and destinations, and improve your ability to earn both miles and elite status in Mileage Plus. Together we will offer you more value whenever you fly. We expect to bring you the benefits of our cooperation starting some time in 2009, and until then, we will keep you informed about our progress.
We appreciate you and your business, and we look forward to seeing you on your next flight.
Sincerely,
Robert Sahadevan
Vice President – Mileage Plus
Continental: Responds to Delta & Northwest Merger
More merger news, this time directly from Continental. Interestingly, they started their own website to provide their perspective on the current airline industry consolidation.
Statement from Continental’s website:
As we’ve said repeatedly for more than a year and a half, our preference has been to remain independent as long as the competitive landscape remained the same. However, the landscape is changing. We will review our strategic alternatives and make sure we remain a strong long-term competitor. As always, our goal is to do what is best for our co-workers, shareholders, customers and communities we serve.
Translation: We will be consolidating in the near future.
The Wall Street Journal has an article on what airline consolidation means for fliers such as yourself. The title, “What’s in a Merger? For Fliers, Not Much” may be enough of a summary, but feel free to check out the article for the details. I’ve included a few choice quotes for additional context.
A few choice quotes from the WSJ article:
The history of airline combinations shows that travelers face a couple of years of more frequent missed connections, vanished reservations and lost baggage, flight delays and unhappy employees. Equally daunting for the companies themselves, many airlines have ended up losing the assets they bought.
Hubs and routes that were able to generate profits before the merger typically survive, and air service that struggled to make money before a merger often disappears after a merger.
New contracts for employees can push costs higher. Different types of airplanes drive expenses up by requiring more spare parts, more training for pilots and mechanics, and refitting of cabins and cockpits, for example.
…airlines already share passengers and, in the case of alliance partners, already price and sell their product as if they were the same airline. That’s true in the case of Delta and Northwest; they’ve already merged their flight schedules as SkyTeam partners. Generating new revenue may be tough.
At the same time, history has shown that competitors can take away customers of the merged airlines when their flights run late or labor groups stage protests. Another pitfall: Losing alliance partners. Continental Airlines Inc. is currently partnered with Delta and Northwest, but could well enter into its own merger feeling the need to get bigger. That could result in the Delta-Northwest combination losing substantial presence in New York and Houston, two of the four biggest cities in the country.
Doesn’t look great for the frequent flyer, but with oil prices chasing $100 dollars a barrel and the current economic situation - what choice do they have?
From a co-worker: According to a United pilot, an in-place contract between Continental and either Northwest or Delta is no longer valid due to the announced Delta / Northwest merger. This opens the door for a merger between United and Continental.
Mergers reduce competition and choices for the customer. In most cases, this will result in higher prices. On the bright side, depending on your location, it could mean more choices to fly and more flexibility of your (constantly de-valued) frequent flyer points.
Let the courting process begin.