Monday, May 10, 2010

Airline Merger Creates Unfair Advantage Yet Good


The biggest merger in the airplane industry. Two companies, United and Continental Airlines, joined together to create the biggest airline company, surpassing Delta. This merger costs more than 3 billion dollars. The two companies have decided to keep United's name but the Continental logo. This merger has made United an overpowering airline over other airlines, which just isn't fair.
With this merge, United is almost given the control of a monopoly. Although they can't set fares without looking at competition, they will be able to set higher fares on international flights where there are less competitors that can offer the same service that this new company will have.
This merge creates an unfair advantage to United as other companies will not be able to compete with the new overpowering company. Airline companies are going to be forced to either cut back costs or pull out all together. This new company will be bringing in a lot more customers than usual, taking customers away from some of the smaller companies that they used to fly with.
This also creates unfair fares for customers that would like to fly internationally. Because of this merger, fares for flights will be increased, since there won't be anyone else who will be able to produce the same amount of flights going out to all parts of the world. People will be forced to fly with this company if they would like to get to their destination on time with more flights going out from this single company.
In my past experiences, I have flown with United and found that their customer service has been awful. One time when I was trying to fly to the Dominican Republic, we had to stop in Philadelphia where our flight was cancelled due to weather. They weren't able to give us compensation and we had to pay for tickets to go to Miami first and then go from Miami to the Dominican Republic.
Hopefully, this merger will help the airline become more successful with customer satisfaction because of the increased intelligence when combined with another airline.
Another good thing about this merger is that it will increase the amount of flights produced by the airline company. This will help many travelers get to where they need to be at the right time.
Although this merger has given United much more power in the airline industry, this merger will help United become a better company that will serve people more easily and better.
Click here to watch the two CEOs of the companies talk about the merger.

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