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.

United Airlines finds $64 million lying around – thanks to your expiring miles

by Scott Carmichael on

Hands up if you have checked your mileage account, only to notice that you forgot to have any activity, and all your miles are gone.

Well, thanks to you, United Airlines just managed to make an extra $64 million.

The bonus bucks were earned thanks to a new accounting method and a huge stash of previously undiscovered expiring miles.

So, yes – air miles are big, big business. So big in fact, that last year, American Airlines managed to “advance sell” Advantage Miles to Citi in exchange for $1.6 billion.

Lesson to be learned here? Always keep a close eye on your miles. It doesn’t matter how many you have in your account, every mile that expires just adds to the bottom line of the airline. Here are some quick tips to add miles without too much hassle:

  • Find a shopping portal that earns you miles (check the airline web site for links)
  • Eat out (and register for a dining rewards program like Rewards Network)
  • Find a mileage promotion from your airlines (many of these involve non-flight activities)
  • Check for mileage discrepancies (did you take any flights without getting miles awarded?)
  • Earn miles when you stay at a hotel

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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.

New United Airlines rule change means no more free same-day travel changes

by Scott Carmichael on

A new change at United Airlines can be summed up with “this sucks”. The change involves same-day flight changes. In the past, if a flight had open seats, you could change your ticket to a confirmed seat, without any fees. Additionally, you could often walk up to a ticketing desk, and have yourself added to the unconfirmed standby list for free – and if a seat opened up, you’d be on that earlier flight without any fees.

As of April 10, United Airlines wants $75 for a confirmed flight change, or $50 for an unconfirmed standby request. Thankfully, the $50 fee only applies if you actually get a seat. Some other exemptions are made for United Global Services and 1K elite members, and members traveling on standard award tickets and full fare tickets. The change is just another in a long list of services that used to be free. This one is especially confusing, because in many cases, moving passengers around can actually benefit the airline, by moving people off otherwise overbooked flights onto flights with empty seats. Since there are no apparent savings, the measure is just another way for the airline to make money off you.

George Hobica over at Airfarewatchdog has put together an updated chart with the new changes, which helps prepare yourself for the shock of having to hand over hard earned cash to your airline. You can learn more about the changes over at United.com.

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

by Scott Carmichael on

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.