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

November 22, 2008 6:55:24 CST

Learn about Newser Points »

« Back to the grid | Next story »

United, Continental Partner, But Won't Merge

Posted Jun 20, 08 5:45 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

  • Shareholders OK Delta-Northwest Merger

    Sep 25, 08 2:45 PM CDT
    Shareholders OK Delta-Northwest Merger Shareholders of Delta and Northwest voted nearly unanimously today to approve the airlines' merger, the Atlanta Journal-Constitution reports. With shareholders in agreement, federal antitrust regulators must now approve the deal. A Justice Department decision is expected late this year, but labor issues remain. Dozens of workers protested today outside the Northwest shareholders’ meeting in New York, shouting, “What do we want? No merger!” More »

  • 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 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 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 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 »

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

Loading...

Other Business Stories

What is Newser?

2008 Codie Finalist

Face it: there's too much news. At Newser a team of editors and writers culls the most important stories from hundreds of U.S. and international sources and reduces them to a headline, picture, and two paragraphs. It's the Newser guarantee: we can take any report or column or video and pack what you need to know into 120 words or less. Newser's short-form aggregation, visual format, and unique information tools help you get more of the kind of news you want, in a quicker and more entertaining way. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »