Chicago-based United Continental Holdings Inc, the world's biggest airline, is set to be created with the merger of United and Continental airlines. While they have been trying hard to convince the Government regulators that this merger would not harm competition in any form, it has almost been 2½ years that the deal struck their minds.
Thomas Lys of Northwestern University's Kellogg Graduate School of Management believes that this merger makes a lot of sense on the financial and operational front. The Company anticipates generation more than $900 million to what it makes today and a saving of as much as $300 million.
"Airlines are not simple companies. They have complex financial structures. And there are huge labor and operations components that will have to be harmonized in order for those efficiencies to be obtained”, he further cautioned.
It is being said that there would not be much change till spring as the only thing that would come up is that the two airlines would be selling their tickets in the same website and they would have combined operations.
While Continental offers only two classes of service that is the coach and BusinessFirst, the united on the other hand provides first and coach classes on most domestic flights. Therefore, it is likely that the united will have to standardize their flights.












