Thursday, May 13, 2010

Business & Civic Leaders Feared by Continental and United’s Merger

The merger of Continental and United airlines has become a serious concern for business and civic leaders as they feel it will result in reduced flights which will cost them a lot of time and money

Business men fear that there travels will be affected because of nonstop flights to both big cities and regional destinations.

United's board of directors have approved the merger. Continental's hub at Hopkins is the smallest of eight U.S. hubs in the merged airline.

Some business travelers have installed life-sized videoconferencing systems in all its offices to help cut travel costs.

The airline says a lot of their customers travel to mid size and small cities. The nonstop flights are equally important as they make travel time efficient.

Hopkins has 72 nonstop destinations and 250 average daily departures in all. A lot of carriers have cut capacities and flights due to recession and high fuel prices. But it still has direct flights to most major business destinations.

The merger of both the airlines would mean connectivity to a lot of places non stop. Many companies send their employees to and from a particular place in a single day. Changing flights costs companies time and money.

Other airlines however fear that merger of both the airlines would worsen the services at Hopkins. There will be dominance on new routes and this would start a competition ending up in rising prices.

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