Impact of the Continental-United Merger regarding Job Losses







10 November 2010 | posted by: Richard Forbes | No Comment

The news of the merger between United Airlines and Continental Airlines has brought with it a lot of speculation over whether a significant job loss will result. The companies have agreed to keep the name ‘United’ since it is a more widely known brand and this has translated into the Continental headquarters to move from Chicago to Houston, United’s headquarters.

United Airlines Merger with Continental Airlines could Lead to Job Losses

Around 800 jobs are expected to be moved to Chicago, meaning while there will be job losses at Houston, gains will be made in Chicago.

Cleveland Ohio’s Hopkins International airport, which is the smallest of the three airports that are a hub for Continental Airlines, risks losing that status. However Cleveland’s Mayor Frank Johnson said that it had the greatest ability to grow as compared to the other hubs.

A concerned party over the merger has been passengers who fear that there will be fewer flights since the two airlines plan to streamline overlapping routes. However, they can be rest assured that this will not be the case since Continental Airlines is required to lease gates to Southwest Airlines.

The impacts of this merger at this stage can only be speculated upon since the two airlines plan to take the process very slowly over 12 to 18 months. Cities expected to feel the effects of this merger, mostly in terms of job losses are Houston, Chicago, Cleveland, New Jersey and New York.
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