Continental and United Airlines approve merger

by Grant Martin on

Two of the nation’s largest airlines, United and Continental have taken one step closer to joining forces to becoming the world’s largest carrier. Early last week, news in underground was that the two airlines were in high level talks to discuss merging operations. Things became more official with the announcement late last week that their respective boards had approved the undertaking.

The new airline, which would be called United Airlines, would have Continental’s CEO Jeff Smisek as the man in charge and would be based in Chicago. Continental’s livery would absorb United’s.

Despite the positive steps last week, several major milestones still need to be addressed before the merger gathers steam. Primarily, the airlines need to obtain regulatory approval from the government before joining forces, and in this political climate, that permission may be difficult to find.

Issues with unions, operations and finances will also take time and patience to address; as a result, even if an official announcement comes on Monday there are months left of negotiation and heartache. Get ready for a long ride.

Airlines try for more edible food options

by Jeremy Kressmann on

Let’s not even bother with the jokes – we all know airplane food is awful. But these days, with most carriers looking for new sources of revenue, several of the major airlines have been stepping up the quality and taste factor of their on-board food offerings.

The days of free (and terrible) airplane meals are coming to an end. With Continental, the last carrier to offer complimentary in-flight meals, discontinuing its free service this fall, the in-flight meal industry is ramping up to better serve customer demand. Airlines ranging from Air Canada to United and American are shuffling their food offerings, realizing that if customers have to pay for it, it better bear some resemblance to something edible. Air Canada is introducing healthier food options like veggie sandwiches and yogurt, American Airlines is partnering with Boston Market and United Airlines will be letting customers pre-order in-flight meals before the end of 2010.

So will customers find these new in-flight food options more enticing? Not necessarily. Many frequent travelers have given up finding food on board, opting instead for the array of food options in the terminal like Cibo Express, Wolfgang Puck Express and the ever-popular fast food vendors. But for those looking for tasty, quality food to go with their air travel, keep looking. A top-notch meal on the plane or even at the airport remains a fantasy.

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.