Merger to create world’s largest airline may be hitting some turbulence
The proposed merger to create the world’s largest airline: Continental-United’s merger is practically a done deal, right?
The headline from Travel Weekly says perhaps not: “United-Continental could be a tough sell in Washington,” it says.
"While it might be hard to argue the logic of the merger from the viewpoint of investors, Obama administration regulators have typically given consumer interests top priority, and lawmakers answer to myriad constituencies that might have reasons to oppose this particular merger or airline consolidation in general,” the story said.
The bottom line, many observers say, is that United and Continental face a bigger challenge in Washington than Delta and Northwest faced when they merged in 2008.
Some prominent politicians already are indicating that the merger could face obstacles. notes Rep. James Oberstar (D-Minn.), the chairman of the House Transportation and Infrastructure Committee, has come out against the merger, for example.
Also, there’s a different climate in Washington under the Obama administration.
Meanwhile, aviation analyst Darryl Jenkins notes there’s a different climate in Washington under the Obama administration.
"This is anything but a done deal," aviation analyst Darryl Jenkins said.. "This administration is different; it’s a lot more hostile toward airlines."
Jenkins and others predict the deal will eventually get done, however, as it faces some obstacles.
By David Wilkening
David
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