Will the United and Continental Merger Result in Significant Job Loss?

What is the job impact of the announced merger between Continental and United? At first glance, the effects of the merger between United Airlines and Continental Airlines will impact more than the cities of Chicago and Houston where each company is headquartered. Given that it was agreed that the company will keep the United name (since it is more widely known in the international market) it is likely that the managers of Continental Airlines who are currently located in Houston will be moved to Chicago. It is estimated that over 800 jobs could be relocated to United's Chicago headquarters. In this case, Houston's loss of jobs will be Chicago's gain.....

Cleveland, Ohio's Hopkins International Airport may also be impacted by the merger. The Ohio airport is currently a hub for Continental Airlines. However, nearby airports in Newark and Chicago are also hubs. This could put Cleveland Hopkins International Airport at risk for losing its status as a hub since it is the smallest of the three airports.

Cleveland Mayor Frank Jackson was quick to point out, "Although we're the smallest of all the hubs (and) we're in proximity to Chicago, we do have a great ability to grow here in Cleveland, where they're pretty much limited in terms of physical capacity to grow in all these major hubs."

Consumers are also worried that the merger will impact them Whatnews. They fear that the merger may result in fewer flights as United and Continental streamline overlapping routes. Fewer routes could mean an increase in both fares and fees. However, consumers will be happy to learn that Continental is required to lease gates at the Newark airport to Southwest Airlines as part of the merger deal. Continental has dominated flights in and out of the Newark airport. This will allow Southwest to get a foothold into the New York market where they currently only operate a few flights from La Guardia airport. This could set off a fare war in this market. Consumers should be wary though as airlines continue to merge. Consumers only have four major carriers to choose from: American, Delta, Us Airways, and United. Since the Delta-Northwest merger, air fares have increased. It is reasonable to assume this trend will continue with the Continental and United Airlines merger.

It remains to be seen what the actual impact of this merger will be. Passengers will not see a noticeable difference immediately. Continental customers will continue to use Continental.com and check in at Continental ticket counters. United customers will do the same. Both Continental and United agree that the process of merging the two companies will be slow. It is expected to take 12 to 18 months to complete. There will definitely be an impact on the cities of Houston, Chicago, Cleveland, New Jersey, and New York.