The making of the largest airline in the world happened few days back when Continental airlines and United Airlines decided to merge. The merger would help these companies to cut of non-viable routes without any further loss of time and cut on losses.
The merger would also help the companies to utilize the maintenance and repair services optimally apart from raising the fares on profitable routes quickly. With the competition on key US routes reduced due to the merger, the merged entity can be expected to increase capacity utilization substantially in the coming months.
The marginal increase in fares and pruning of non-profitable routes would all add to the profits of the company. Within the next 12 months, the combined entity could post decent profits , say experts. The year of 2011 could well be the best year in the history of the merged entity as the US economy revival gathers further momentum.
US airfares set to go up further