United-Continental merger impact weighed

February 19, 2008 09:36 AM E-mail| |Comments ()| Text size +

From the Globe-trotting blog....

What would a United-Continental merger mean at Logan?

The answer: Maybe not so much.

I can tell from the blank stare that you are, once again, clueless. OK, let's back up for a second and get you caught up.

The airlines, facing rocketing fuel costs and grinding competition, are scrambling for Advil Extra Strength and answers. Many are feeling the urge to merge, hoping that two can indeed live cheaper and more profitably than one.

For the past few weeks, Delta and Northwest have reportedly been doing the dance and may make an announcement soon. My pal Kim Blanton took a look at that deal in a story last month.

In the past few days, news guys have been filing reports saying that United and Continental are also chatting it up, partly because of concerns about being left in the dust if a Delta-NWA deal gets done.

What does this mean to us? Very likely not much. At least in the short term. United hauls about 10 percent of Logan passengers, and Continental 4 percent, according to the folks at Massport. And there are no overlapping routes: Continental goes to places like Newark and Cleveland while United hits Left Coast hot spots, D.C., and Chicago.

But in the long run, fewer competitors tend to mean higher fares. That you can take to the bank, hombre. Stay tuned.
(By Paul Makishima, Globe staff)

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