Skip to: Content
Skip to: Site Navigation
Skip to: Search

August 20, 2008 5:18:06 PM CDT

Learn about Newser Points »

« Back to the grid | Next story »

United, Continental Partner, But Won't Merge

Posted Jun 20, 08 5:45 AM CDT in Business 

(Newser) – United and Continental Airlines have forged a marketing alliance that will let them book each other’s seats, share miles and join international flights—but won't merge, reports the Wall Street Journal. The deal provides welcome cost savings in the face of surging fuel prices, but avoids the labor tensions and service disruptions that come with a full-blown merger.

"Alliances can work better than mergers in raising revenues and reducing costs without the integration, regulatory and labor headaches," an analyst tells Bloomberg. The agreement grew out of rocky merger talks, with Continental saying it wanted to remain independent. The value of both companies’ stocks leaped after the alliance was announced.

Sources Wall Street Journal, Bloomberg

0 comments | Print E-mail | Digg Seed this on Newsvine Add this link to Del.icio.us StumbleUpon

Related Newser Stories

  • United Should Be Liquidated

    Aug 13, 08 5:49 PM CDT
    United Should Be Liquidated What with the oil price spike, times are rough all around for airlines, writes Roben Farzad for BusinessWeek. But United presents a uniquely bungled case, and it is irresponsible to pity it along with other struggling players in the industry. "Even if the airline devised a way to run its 767s on oil from all the peanuts it has wrested from passengers, the institution seems almost culturally incapable of banking a profit," writes Farzad.
    More »

  • Airline Shares Bounce Back as Oil Prices Fall

    Aug 12, 08 2:30 AM CDT
    Airline Shares Bounce Back as Oil Prices Fall Airline shares rose yesterday following an analyst's prediction that the big carriers could be back in the black by next year, reports the Wall Street Journal. The stocks have been recovering since mid-July as oil prices started to slip downward and the industry's cost-cutting and revenue-boosting measures began to take effect.
    More »

  • Fuel Costs Ground Extended Flights

    Jul 8, 08 4:52 AM CDT
    Fuel Costs Ground Extended Flights Super-long flights were hailed as the future of aviation only a few years ago, but the soaring price of fuel has grounded those plans, reports the Wall Street Journal. Airlines are delaying or canceling intercontinental routes as the cost of keeping "flying tankers" in the air for over 12 hours stops making economic sense. More »

  • US Airlines May Need Foreign Aid

    Jun 30, 08 8:43 AM CDT
    US Airlines May Need Foreign Aid Troubled US airlines could be looking to Congress to ease foreign ownership laws, as financial woes push them into the arms of new investment partners, the Wall Street Journal reports. Overseas companies, barred from holding more than 25% of the voting stock of US carriers, are eager to relax the rules. "It could be the financial exigencies of the day that finally make for a breakthrough," British Airways Chairman Martin Broughton tells the Journal. More »

  • Air Travelers Will See 10% Flight Cuts by Fall

    Jun 28, 08 6:20 AM CDT
    Air Travelers Will See 10% Flight Cuts by Fall Travelers will start to feel the full force of airline moves to grapple with rising fuel costs by Labor Day, as 10% of flights will be cut, a dip that will downsize the industry to post-9/11 levels, the New York Times reports. The reductions could push fares up by 40% over the next 4 years, on top of 17% hikes in the cost of tickets already this year. Some 100 smaller cities will also lose service. More »

United Airlines first class passengers check in at San Francisco International Airport in this file photo. Continental Airlines says it is forming an alliance with United Airlines, instead of a merger...   (AP Photo/Paul Sakuma)
The CEOs of United and Continental airlines meet in Chicago yesterday to sign a framework agreement outlining the system-wide alliance and cooperation principles between their carriers.   (AP Photo)
Continental Airlines said yesterday that it is forming an alliance with United Airlines to link their networks and services worldwide, hoping to offset rising fuel costs.   (AP Photo/David J. Phillip)
« Prev« Prev | Next »Next » Slideshow
Our editors also recommend:

Threads (1 of 1)

Tags

airline industry  • United Airlines  • Continental Airlines  • airlines  • mergers


Loading...

Premium Articles from HighBeam

Find more articles like this

Today's Most Popular


Other Business Stories

What is Newser?

2008 Codie Finalist

Newser gives you more news in less time. We search for the best and most important stories all over the web, read them for you, and deliver concise and sharp summaries—along with links to the full text. Newser provides a way to stay on top of an ever-expanding horizon of news and opinion—politics, sports, business, trends, technology, personalities, crimes, and controversies. Newser keeps you not just better informed, but, with our signature graphic interface and smart condensed format, more enjoyably informed.

Learn more »