United and Continental to announce merger on Monday

The Wall Street Journal reports that United and Continental are expected to announce a merger on Monday. Oh boy. Not even sure where to start on this one.

First of all, I guess, this was absolutely necessary. If you had asked me a couple of years ago if United and Continental had a chance of merging, I would have said there’s no way. I’m amazed by how much aligning the airlines have done in the past year or so, and frankly, how well it has all gone over. Consolidation is still necessary in the industry, and this was inevitable. And from the perspective of the two companies (especially United), this was a brilliant move. Enough said about that.

Let’s think about this from the perspective of the consumer. Again, I have mixed feelings. On one hand United just couldn’t have survived in the long run as a standalone airline, so I’m happy in the sense that I want to see them survive, and I’m convinced a Continental merger is the best way for that to happen.

At the same time, selfishly, I’m sad to see this merger happen. If you’re a mileage runner you shouldn’t be looking forward to this merger, plain and simple. Part of what makes United “profitable” as a customer is what a mismanaged airline they are and how poorly so many of their policies are thought out.

If you complain that your seatmate farted, you’ll get a $200 electronic certificate good for future travel. On Continental, on the other hand, they’ll find a way to blame you for a flight attendant spilling a box of wine on a passenger. At United you can make four connections in each direction of travel within the US. After all, who wouldn’t want to fly from Tampa to San Francisco via Washington Dulles, Newark, Denver, and San Francisco? On Continental you can connect once for the most part, and with a hub conveniently located in Houston, chances are your layover will be right on the way.

On United you can either pay a truly outrageous first class fare or upgrade on a $200 ticket. On Continental you can pay a reasonable first class fare and get a good value, but don’t expect a transcon upgrade unless you’re traveling on close to a full fare ticket. Ever. You see where I’m going with this?

Don’t get me wrong, most of the above is just me being a selfish consumer that’s looking out for me. And since Continental’s management team is a bit more on top of things, I would expect most of these ridiculously generous United policies to end. And that ain’t good for me!

Now, let’s talk more generally for a second. I think we can finally say goodbye to Starnet blocking. There’s no way in heck Continental’s management will stand for Starnet blocking, so I’m betting that’ll be the really, really good news.

The other question is what happens to Economy Plus? I’m thinking Continental will eventually add Economy Plus to their planes, since United seems to be generating a good bit of revenue through upsells.

Lastly, and this is a question near and dear to my heart, what happens to million miler status? At United one million miler gets you lifetime Premier Executive status (mid tier), two million miler gets you a Red Carpet Club membership for life, and three million miler apparently gets you 1K for life. At Continental, on the other hand, one million miler gets you Silver for life (low tier), two million miler gets you Gold for life (mid tier status), and four million miler gets you Platinum for life (top tier status). The only cool thing about their program is that you can appoint a companion to have the same status for life.

But still, I’m approaching million miler, and I’ve really been looking forward to Premier Executive status for life. Here’s to hoping the million miler program of the combined airline looks more like United’s current scheme than Continental’s.

This’ll definitely be an interesting merger to watch…

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SFOtoORD Guest

MM is my #1 worry. I'm at 850k lifetime which probably means I won't make MM until right about the time the merger would be full consummated. Lifetime *G is infinitely more valuable than lifetime *S.

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HunterSFO Guest

@bmvaughn - didn't UA lose less money Q1 than CO? Maybe in the long run, the payout of compensation provides a worthwhile return on investment. I think for 99.9% of UA flyers it will be a one time thing and not cost the airline money - only FTers really use it very much. Remember, UA is very stingy - so they MUST have crunched the numbers and found it to be worthwhile.

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bmvaughn Guest

UA won't want to lose traffic to AA, CO to DL... I expect the merger to be pretty neutral for FFers - except for the outrageous compensation that UA doles out... that will go away.

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BMI Flyer Guest

Economy Plus has caused me to fly UA trans-Atlantic instead of CO or US. (BMI is a non-starter trans-Atlantic.) I've connected via LHR to fly UA, rather than fly non-stop US-UK on CO, when flying in back. So I really hope that the E+ seating will be added to (current) CO trans-Atlantic 2-cabin aircraft. I also find UA's new C/J seats to be MUCH better than CO or the deployed US C/J seats. So I'd like to see CO aircraft get upgraded to those new UA horizontal flat-bed seats (with AVOD & iPod connector) for international flights. I'm not willing to pay for C/J on current CO, but am willing (sometimes) to pay for it on UA, and the seats (and AVOD) are a big reason why. Last, on selected routes with CO's widebody aircraft (e.g. Trans-Atlantic/Trans-Pacific 777s, it would be nice to have at least some F seats added. For example, NYC::HKG and NYC::LHR still have lots of bankers/executives able/willing to pay for an F seat. So moving those 777s to 3-cabin would make sense. Oh, and somehow the CO flights at LHR need to move from T4 to T1 soonest, so *A connections are sane at LHR.

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Crissy Guest

I like how you differentiated between what was bad for you and maybe good for the airlines. It's interesting, I hope they keep the economy plus. I don't have status so don't get upgrades, but am willing to pay a little more for a better seat on a long flight.

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