United Airlines Still Far from Reaching $1.2 Billion Promised Merger Payoff
A United Airlines plane with the Continental Airlines logo on its tail, taxis to the runway at O'Hare International airport in Chicago October 1, 2010. Frank Polich / Reuters
The DOJ’s move to block the American-US Airways merger has sparked an investigation into the efficiencies of past mergers and United’s case suggests that the benefits of a new American are not as lofty as the airlines claim.
Excerpt from Denver Post
Nearly three years after United Airlines and Continental Airlines merged, outward appearances finally suggest a unified airline, but labor inefficiencies are threatening to further delay the fulfillment of the promised merger payoff.
“There are inherent inefficiencies in merging, but you have to overcome that and then get beyond that (to achieve the benefits),” said Borenstein, “and it sounds like they are still trying to get over that hump.”