United and Continental to merge

In an announcement Monday, May 3rd, Continental Airlines will merge with United Airlines, becoming the new "largest airline in the world" if the merger is approved by the government. The new airline will be called United Airlines. In an e-mail to frequent fliers, United claimed that all cities currently served by Continental or United would continue to be served by the combined airline. Continental left the Delta/Air France led Skyteam alliance last year for United's Star Alliance. The bottom line for consumers is a further decrease in competition and choice. In recent years, America West has been absorbed by US Airways, Northwest Airlines has been folded into Delta Airlines, and now the Continental name will also soon disappear. It is a sad day for the airline industry, already reeling from over $2 billion in losses during the volcanic ash induced shutdown of most of Europe. Evidently, airlines see mergers as their only path to survival.