May 7, 2010

Will United and Continental's Sky-High Marriage Fly?

by David Hechler
Corporate Counsel

The courtship was fast -- unless you consider that United Airlines and Continental Airlines almost got married two years ago, before they suffered last-minute cold feet.

This time it looked as though United was going to get married all right, but it was waltzing toward the altar with another partner. US Airways was all decked out in its party clothes ... until Continental tapped United on the shoulder and said, "May I have this dance?"

And the guy who did the tapping, by all accounts, was Jeffrey Smisek, Continental's CEO -- and former general counsel -- who will occupy the top job at the merged company.

But will the merger fly?

Most industry observers think so. If the Delta merger with Northwest passed muster two years ago, why shouldn't this one?

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