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Continental Airlines and United won't be bed fellows after all
Continental Airlines has decided to stay single after all--sort of. United Airlines' parent company UAL had been wooing Continental looking for a merger hook up, but since United hasn't had great luck financially as of late, (see Grant's post), Continental has said, "See ya later, toots," to the merger deal.
According to this article in today's New York Time's, Continental Airlines is still casting its gaze towards American Airlines and British Airways for some sort of alliance deal. In the meantime, United is looking for another bed pal.
U.S. Airways may be it, but that's not clear either. With all the trying out the beds, it's hard to keep up. What is clear is that ticket prices are going to keep rising. The economy is not being particularly kind to the airline business, although, since the New York Times article was written, the shares of Continental have gone up. The article said at the end of the week, shares were $15.21. Now a share is at $17.25.
As the airlines are looking to swing deals, I'm hoping someone will look at those old Skybus routes. I'm still recovering from that airline's shutdown.
Filed under: Business, United States, Airlines, Transportation, News
Reader Comments (Page 1 of 1)
Thanh T. Apr 28th 2008 7:03AM
The cost of fuel is affecting everyone…if the Airline Industry can find a better fuel supplier or develop new more fuel efficient jet engines-jet fuel that would be great. However, I do not think it will happen anytime soon.
I think if the cost of airline tickets-options goes too high this summer and beyond, many travelers may consider driving or flying with airlines offering better deals-convenience to fill seats.
Interesting strategy by Continental Airlines...(perhaps, their business strategy is a wait and see approach until fuel prices level off.)