BREAKING: United and Continental airlines to merge?

by Grant Martin on

We hear rumblings of airline mergers every day here at Gadling headquarters, but this one is starting to pick up traction. Chicago-based United Airlines and Houston-based Continental Airlines are reported to be in merger talks, with each respective board meeting to discuss possibilities and logistics this week.

What would a merger this mean for the average world traveler? The combined airline would overtake Delta Airlines as the largest carrier in the world, and with fewer players in the market, prices will undoubtedly go up. As of this year, both Continental and United are in the same Star Alliance, so those saving miles won’t be seriously affected by the merger.

The main concern that travelers will need to mull is the change in customer service. Larger ubiquitous airlines tend to cover the spectrum of destinations well but fall short on loyalty programs and public relations (see: Delta,) so those looking for a more boutique experience may shirk away to JetBlue or Virgin America.

Conversely, if the mega-airline can emulate the current outstanding service that Continental hosts then they’ll earn some serious passenger loyalty and subsequent cash. Let’s hope that’s the route they take.

An announcement on the merger could come as early as next Monday.

Continental to charge for meals in coach

by Grant Martin on

The other shoe has finally dropped. Continental Airlines, the one domestic airline still proudly boasting free meals in coach just announced that they’ll be eliminating the perk come fall 2010. They’ll be joining the ranks of all other domestic carriers that currently charge for food, a move that they estimate will earn them $35M per year.

Eventually, we all knew that this had to happen. With each carrier gradually moving towards an a la carte model of pricing, extra services from baggage to leg room to food now comes with a price — that’s partially what has kept airline prices so low for the last decade. So in order to remain competitive, Continental had to adapt.

More than anything, Continental’s changes are symbolic of an industry changing. Like our parents bemoan the days of black tie air travel, I see myself one day telling my grandkids about how they “used to serve food for free on airplanes!” Perhaps we should just all be happy that we’re still getting from point A to point B.

Continental Airlines newest money making scheme: paid exit row seating

by Scott Carmichael on

The accountants at Continental airlines just announced their latest diabolical plan to squeeze more money out of us – paid exit row seating.

On March 17th, passengers in coach can add 7 inches of legroom by purchasing an exit row seat up to 24 hours before their flight. Elite program members and passengers traveling with them will get access to the seats for free.

Prices for a little extra legroom are pretty steep – USA Today quotes a $59 fee for a flight from Newark to Houston. A little math shows that Continental could be banking as much as $750,000 per day in “legroom fees”.

Of course, as with any airline, Continental spins the fee around, claiming “Our customers want more choices”. Brilliant.

Continental is not the first (nor will it be the last) to introduce these fees – JetBlue, Airtran, US Airways and Virgin America all have some form of seat upgrade program in place. British Airways even went so far as to announce a fee just for being able to select a seat.

Now the airlines have discovered how easy it is to grab a little extra cash, expect even more “innovations” in the fee department.

US Airways the latest to increase extra bag fee

by Tom Johansmeyer on

US Airways has joined the ranks of airlines increasing their fees for extra baggage. The low cost carrier is raising its extra baggage fees by $5 each way, which is comparable to the increases levied by Delta, Continental and United. With the new charge, US Airways will be charging $25 for the first bag checked, with a second bag costing you $35 each way. The new fee takes effect on February 1, 2010. If you pay in advance, you can pick up a $2 discount on the first bag and a $3 on the second bag. American Airlines is still charging $20 each way for the first checked bag and $30 for the second one. On JetBlue, the first checked bag is free, and Southwest will let you check two bags sans charge.

The increased fees aren’t terribly surprising. The travel market slump is likely to continue through much of 2010, especially with the job market unlikely to improve until the middle of the year. And, airlines have become accustomed to all the extra cash they pick up from these fees. Since you’re a captive audience, they know you’re likely to pay … what other choice do you have?

So, get ready to cram everything you have into the overhead compartment. You’ll draw the ire of everyone else on the plane, but you’ll have the satisfaction of a few Andy Jacksons sitting in your pocket.

Early Christmas gift from the airlines – no advance purchase surcharges

by Scott Carmichael on

After several years of adding additional fees and rules to our tickets, the airlines are finally giving us something back for the Holiday season.

Seven of the major carriers (American Airlines, United, Delta, Northwest, US Airways, Frontier, AirTran and Midwest) announced that they would waive all advance purchase rules for tickets between today and January 4th 2010.

What this means to last minute travelers is that an $1800 ticket will be about $1500 cheaper when purchased for same day travel.

Of course, the airlines wouldn’t be the the money makers we know them to be, without a bunch of restrictions on their sales:

The cheapest tickets are available on Dec. 16, 17, 25 and Jan. 1 and 4

The second cheapest level airfares are about 30% higher than the lowest fares. Travel for this level is valid on December 18, 20, 21, 24, 30 and 31.

The third cheapest level is about 55% higher than the lowest fares. Travel dates will be December 19, 22, 23, 26, 28 and 29.

December 27 and January 2 and 3 have not been included in the holiday fare sale – and those tickets could end up being substantially more expensive.

(Source: USA Today / Bestfares.com)

Bottom line is that even though the airlines appear to be the good guys, their complicated fare structure could end up costing passengers more. Travelers tend to book flights for the holiday season in advance, so removing last minute purchase rules really only benefits those that suddenly decide to go somewhere for Christmas or who run into sudden changes that require a last minute ticket purchase.

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