Will the United and Continental Merger Lead to Vital Job Loss?

What’s the job influence of the introduced merger between Continental and United? At first look, the consequences of the merger between United Airways and Continental Airways will influence greater than the cities of Chicago and Houston the place every company is headquartered. Provided that it was agreed that the company will preserve the United title (since it’s extra broadly recognized within the worldwide market) it’s probably that the managers of Continental Airways who’re presently situated in Houston might be moved to Chicago. It’s estimated that over 800 jobs may very well be relocated to United’s Chicago headquarters. On this case, Houston’s lack of jobs might be Chicago’s acquire.

Cleveland, Ohio’s Hopkins Worldwide Airport can also be impacted by the merger. The Ohio airport is presently a hub for Continental Airways. Nonetheless, close by airports in Newark and Chicago are additionally hubs. This might put Cleveland Hopkins Worldwide Airport in danger for shedding its standing as a hub since it’s the smallest of the three airports http://|united phone number.

Cleveland Mayor Frank Jackson was fast to level out, “Though we are the smallest of all of the hubs (and) we’re in proximity to Chicago, we do have an excellent capacity to develop right here in Cleveland, the place they’re just about restricted by way of bodily capability to develop in all these main hubs.”

Customers are additionally frightened that the merger will influence them. They concern that the merger might lead to fewer flights as United and Continental streamline overlapping routes. Fewer routes may imply a rise in each fares and charges. Nonetheless, shoppers might be comfortable to study that Continental is required to lease gates on the Newark airport to Southwest Airways as a part of the merger deal. Continental has dominated flights out and in of the Newark airport. This can enable Southwest to get a foothold into the New York market the place they presently solely function just a few flights from La Guardia airport. This might set off a fare struggle on this market. Customers needs to be cautious although as airways proceed to merge. Customers solely have 4 main carriers to select from: American, Delta, Us Airways, and United. Because the Delta-Northwest merger, air fares have elevated. It’s cheap to imagine this pattern will proceed with the Continental and United Airways merger.

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