Continental + United… Good for Cleveland?

On May 3, Houston-based Continental and Chicago-based United Airlines announced a definitive merger agreement that the fifth largest and third largest airlines, respectively, would join forces to create the world’s leading airline.  According to the official press release on PR Newswire, the airlines will now use Continental’s logo and the name United Airlines.  Their new tag line will be “Let’s Fly Together” and here’s an excerpt of the official press release “fluff,” as Professor Sledzik would call it, outlining the benefits of the merger.

“[United Airlines will provide] superior service to customers, expanded access to an unparalleled global network serving 370 destinations around the world, enhanced long-term career prospects for employees, and a platform for improved profitability and sustainable long-term value for shareholders. The all-stock merger of equals brings together two of the world’s premier airlines, creating a combined company well positioned to succeed in an increasingly competitive global and domestic aviation industry.”

I’m a devote Continental flier, so along with other consumers, I’m asking, “How is this going to effect me?!”  One of the reasons I fly Continental is that eight times out of ten, it’s the cheapest carrier with the most direct route from Cleveland to my destination, thanks to Continental having a main hub here.  I’ve also never had a complaint about their customer service or my satisfaction with a flight; its actually quite the opposite.  As an individual that only flies for pleasure and not work, their frequent flier program is decent and the one time I got bumped, I not only landed a posh first class seat, but a $400 flight voucher.  I was sold.

I also wanted to take a look at how Continental and United are handling the public during this merger.  When I started researching for this blog, the first two sites I visited were, big surprise, Continental.com and United.com.

"Let's Fly Together" Source: United Airlines

While I’m very impressed with the online news rooms, there is nothing regarding the merger.  Nada. On either site.  Is this the work of the lawyers, I wonder?

This early in the game, airline experts are saying United Airlines will be based in Chicago, and there’s a chance Cleveland will be eliminated as a hub.  The merger is also expected to lead to job losses here, and fewer options for business travelers.  Democratic Senator Sherrod Brown has already urged the Transportation Secretary to consider that a merger could harm Ohio airports, reducing flight options and increasing prices.

According to Ned Hill, Dean of the Levin College of Urban Affairs at Cleveland State University, “Wherever United and Continental competed on a route, that will now get more expensive.  Wherever Continental had a monopoly on a route, and a lower fare carrier comes underneath it, prices will drop.”

A big unknown at this point is how the merger will affect Cleveland’s ability to attract and retain businesses.  As

When two become one. Source: Cleveland.com

the head of Team NEO, part of Cleveland Plus, it’s Tom Waltermire’s job to help Northeast Ohio attract new businesses.  He says it’s too early to know if changes at Hopkins would make the region less competitive. It’s possible, he says, that it would remain well serviced by lots of flights. But even if they do lose some air service, he says the region “will still be appealing.”

Well, of course Northeast Ohio will still be appealing; business flight charter is a determinant, but certainly not the only one!  (Be sure to check out Team NEO’s new international business attraction strategy here.)

In my opinion, Continental and United will need to save face when the heat comes for expected job losses.  Continental employs 2,200 workers at Hopkins, with 1,000 others employed by its regional airline partners.  Tongues have been wagging since late April, when the Plain Dealer reported on the still-unconfirmed merger talks.

U.S. Rep. John Boccieri, a freshman Democrat from Alliance and a member of the House Transportation and Infrastructure Committee, said it’s important to keep the airport jobs.  “We want to make sure jobs would be sustained and not unravel all the gains we’ve made with expansion of service that Continental has provided,” said Boccieri.

I’d say it’s time to step up the media game on behalf of Continental and United.  Though they have issued press releases, there are very few (official and non-official) comments coming from the C-Suite.  It’s time for Continental Chief Executive Jeff Smisek and United CEO Glenn Tilton to sit down with the likes of “60 Minutes.”

I’m big on direct flights (it’s essential when flying with kids), and if Continental cuts back on direct flights to my destinations, I may be in the market for another airline.  I know I don’t stand alone when I say, “Don’t mess with my frequent flier miles” as well.  Keep the jobs in Cleveland, and keep our hub, United Airlines, and you and Cleveland should remain on good terms.

Advertisement