Continental-United merger will raise airline prices, survey says
Forty-two percent of Americans believe the pending $3.2 billion merger between Continental Airlines Inc. and United Airlines will result in higher airline prices, according to a Rasmussen Reports national survey released over the weekend.
The Rasmussen survey of 1,000 U.S. adults, conducted by telephone on May 5 and 6, found that only 6 percent think the joining of the two airlines will bring down prices. Another 21 percent aren't sure what will happen while 31 percent expect prices will remain about the same.
Only 12 percent say the merger, announced May 3, will be a good thing for travelers, while 29 percent are undecided.
Frequent travelers were more likely to say the combination will be bad for travelers.
Rasmussen said the poll's margin of sampling error is plus or minus 3 percentage points. Field work for Rasmussen Reports surveys is conducted by Pulse Opinion Research LLC.
The merger, if it receives regulatory and shareholder approval, will create the world’s largest airline low fee pay day loans.
The new airline, which will fly under the United name, will carry an estimated 144 million passengers a year to 370 destinations in 59 countries.
When asked in a recent survey what they thought would emerge from the joining of Houston-based Continental (NYSE: CAL) and Chicago-based UAL (NASDAQ: UAUA), 38 percent of 500 Houston Business Journal readers said “a worse airline,” 33 percent said “more unemployment,” 17 percent said they "didn’t know yet" and 10 percent said “a better airline.”
The proposed merger is also not a hit with U.S. Congressman Jim Oberstar, who is asking the government to take a hard look at deal.