United Airlines made an agreement with Continental Airlines to buy them for 3 billion plus dollars making them the world’s largest carrier with commanding positions in top countries. The new United Airlines would pass up Delta Airlines in size which would help in attract more high-fare business travelers. The new Untied would travel to 370 destinations in 59 countries. The airlines said that combining the two companies they would save an average $1 to $1.5 billion dollars a year while generation $800 to $900 million but 2013. This would be a new yearly revenue. Before the merge of the two companies, both were losing money due to high fuel costs. Both companies also shrunk in size prier to making the merging agreement. The merge of the two companies will also create more jobs which then people will have more money to inject into the money flow cycle of America. However this new big company will bring even more competition for struggling airline companies like American Airlines.
1 comment:
This is a great step and will maybe help increase travel. With flying being more of a luxury, it has almost evened out considering gas prices these days. With more people flying they will be going on more trips which would support more ares relying on tourists as well as aairline companies themselves.
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