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Airlines to merge, likely will affect local air travel
May 04, 2010

The deal between United and Continental Airlines will likely have some impact on flights between Eau Claire and Chicago.

At the beginning of March, United Express Carrier Sky West started the flights. "It's really a boon to us here in Eau Claire to be able to fly directly down to Chicago," said Thomas Kemp, Associate Professor of Economics at UW-Eau Claire. "The carrier that's flying to our airport has a long-term contract with United," Chippewa Valley Regional Airport Manager Charity Speich said. It's why she says she doesn't think its services will change for many years.

An area travel agent believes pricing will be easier to understand because of the merger. She also says people heading out of the Chippewa Valley Regional Airport going to Chicago will have more destination opportunities. Cindy Faclam of Travel Leaders also says the deal would make it easier for frequent travelers to stick to the same air carrier.

"It will take quite a long time, but, I think it will be good in the long run," she said. "We would hope that this would mean lower operating costs for United and Continental," Kemp said. He says that could happen as long as competitors keep the new airline honest. "Now there's increasing foreign air carriers operating within the United States, so there is competition from the other airlines."

If that competition goes away, he says prices would go up. United and Continental say they don't set air fares, so this deal shouldn't affect them.

"The trend in the industry is consolidation, so it's not surprising that this is happening," Speich said.

She admits the airport won't know exactly how the merger will impact it until she hears from the airlines themselves.

Kemp says the airlines' union contracts will likely become an issue as the merger goes forward. The merger still needs government approval before it can go into effect.

Source :- http://www.weau.com