Is a Merger between Continental Airlines and United Airlines Possible

The Rumor Patrol of Airline Talks Continue

There are several rumors flying of U.S. airlines being in talks, and launching takeovers of each other. Thus far, 2007 is the year of the airline merger rumors as no takeovers have occurred. However, there is a lot of talking going on.

Airlines Involved
United Airlines is rumored to have been in talks with Continental Airlines over a possible merger. Rumors started popping up about the two in December 2006.

Current Offer / Offers
The current status of the talks has not been disclosed.

Response to the Offer
Response unknown thus far.

What Is Being Said about the Merger Rumors
It seems that United may be waiting to see what happens with the US Airways / Delta Airlines situation before doing anything.

What a Merger Could Mean for Air Travelers
Continental and United both have different hubs but they fly many of the same routes within the United States. Continental does have a much bigger presence in Latin America, and United in Asia, so internationally there is a potential benefit for integrated service. Within the United States though, a merger could certainly have an impact on competitiveness and potential job losses.