What does the largest airline in the world mean to passengers?

After more than two years of going through the approval process, United and Continental completed their merger, creating the world’s largest airline. But now there’s a more immediate question for passengers: what will the impact be on travelers?
 

More or less service? More or less options?
 

There’s a vast divergence of opinion. Here are some early answers:
 

—Higher prices are likely. “Losing a major competitor is likely to make prices rise — all things equal on the economy and fuel prices,” said Rick Seaney, CEO of FareCompare.com.
 

—That’s particularly the case in smaller airports where there’s already less competition, experts say. United and Continental disagree, maintaining that competition is strong enough everywhere to keep prices down.
 

—There could be organizational or dislocation problems, at least in the near future. "The overall record of airline mergers is mixed at best," said Philip Baggaley, an analyst with Standard & Poor’s. "Often there are some integration problems, particularly involving labor early in the process.”
 

—When it comes to service initially, it might or might not be any better than it is today. Continental ranks higher than United in quality and service in a USA TODAY analysis of government and consumer survey data from 2005-2010. Continental is seventh, and United 11th. So experts conclude that service will depend on whether Continental’s customer service standards will dominate.
 

—Longer term, could this mean better service overall for passengers? Yes, says management operations professor Robert Shumsky at Dartmouth. In the long run, he said, he thinks the consumer will get a better airline and travel experience.
 

–Will the two different airlines offer the same services currently available? Probably not. Compromises will have to be made in merging the two carriers’ operations and workers. Some services offered by one airline that some travelers like could be eliminated or watered down.
 

—Will business travelers eventually embrace the new airline? Kevin Mitchell, president of the Business Travel Coalition, said most of his corporate clients assume prices will rise. But he said many think enhanced discounts will offset fare increases for big travel customers.
 

Whatever the case, flyers will not experience any dramatic changes anytime soon.
 

Passengers will probably not feel the changes for around half a year. But once the logistics of the merger are concluded in around 18 months, the new airline will retain the United name and be based in United’s hometown of Chicago. The airline will also retain Continental’s logo and be run by Continental’s CEO Jeff Smisek.
 

The airlines estimate a merged United would generate about $30 billion in revenue a year from carrying about 144 million passengers to 370 destinations in 59 nations. They say it would provide the broadest global travel network in the world, which should appeal to more travelers, especially high-paying business travelers.
 

The new United and its regional affiliates will offer about 6,100 flights a day here and overseas.

Both carriers are members of the Star global alliance, a team of 28 airlines from around the world that collectively serves 1,172 destinations in 181 countries.
 

Most predictions are that the new airline will be profitable. But questions remain.
 

Said Shumsky:
 

"The bigger question is five years down the road…will you have a very large, well-run company, or something that has devolved into the lowest common denominators of the two?"
 

By David Wilkening