Transportation

As Continental (CAL) Walks From United (UAUA) Link-Up, Airline Mergers Look Less Attractive

The board and management of Continental Airlines (CAL) have decided that staying single is the best way of life. After long merger talks with United (UAUA), Continental has elected to go it alone.

Continental may still enter a "code sharing" alliance with one or more airlines so that customers can have common ticking across more than one carrier.

The decision is based on the premise that airline mergers created nightmarish customer service problems which drive fliers to the competition. It is a sound position and calls into question the wisdom of Delta’s (DAL) merger with Northwest (NWA).

While industry marriages may allow for the cutting of some routes and personnel, they can lead to labor relations headaches including strikes by employees who are trying to keep their jobs. The hook-ups also do nothing to solve the more pressing problem at all airlines–rising fuel costs.

Whether solo or linked, several of the large US carriers could go into Chapter 11 this year. A combination of $120 crude and a recession which is almost certain to curtail air travel put the airlines under pressure which their managements cannot relieve.

The airline industry is about to undergo another profound restructuring, whether it wants to or not.

Douglas A. McIntyre

Credit Card Companies Are Doing Something Nuts

Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.

It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.

We’ve assembled some of the best credit cards for users today.  Don’t miss these offers because they won’t be this good forever.

 

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.

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