New United Airlines livery still keeps a bit of Continental in the mix

What you see here is the proposed final product of the United Airlines – Continental merger. As you can see, the new airline will fly with the United name, but keeps the globe logo from Continental.

I’m not sure what to make of it – but since these two airlines have been such important players in the aviation world, it’ll take a while to get used to the combination.

Over at Unitecontinentalmerger.com, you’ll find a lot of information about the merger, and how it’ll impact travelers.

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Continental and United Airlines approve merger

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.

BREAKING: United and Continental airlines to merge?

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.

Next candidates for an airline merger – United Airlines and US Airways?

In what can probably be described as “just a matter of time”, rumors are heating up about a possible United Airlines / US Airways merger.

The push for this kind of consolidation is being fueled by the last big airline merger – that of Delta Airlines and Northwest Airlines. Of course, anyone who has followed the aviation world will know that a United/US merger has been in the news before. The two tried to merge back in 2000, and again in 2008. At one point they had already put their signatures on the deal, but had to cancel the party when the government and unions voiced their opposition.

Despite the size of the two airlines, a combination would still only make them the second largest in the nation.

All these mergers mean fewer airlines (US Airways merged with America West several years ago), and a United/US merger may force Continental to go shopping for similar arrangement.

Of course, things are still in a very early stage, and have not moved beyond “speculation”. Time will tell whether three times really is a charm for these two airlines.

Hundreds of flights cancelled as Iberia workers go on strike

Thousands of passengers were left stranded today as workers at Iberia Airlines walked off the job for the first day of a two-day strike.

Iberia was forced to cancel more than 400 of its 2,000 flights for this Monday and Tuesday as cabin crews protested the fact that they haven’t received a pay increase in four years. This is a tough situation for Spanish workers, who live in a country with one of Europe’s highest inflation rates, between 3.6 and 4 percent annually in the past few years. And that’s just the official rate. Living in Madrid I can say that here at least it seems to be much higher.

Spain’s national airline has been hit hard by the recession and this new blow will only worsen its situation. It couldn’t be helping Iberia’s chances of clinching a proposed merger with British Airways either.

Information on the affected flights is available here.