http://www.upi.com/Business_News/2010/09/17/United-Continental-merger-approved/UPI-30211284738619/
The US airline industry seems to be constantly changing with new airlines starting up and others failing, but now the trend has turned to the major airlines merging to form some of the world’s largest airlines. Over the past 5 years 6 major airlines have merged, US Airways and America West in 2005, Delta and Northwest in 2008, and the most recent United and Continental in 2010. The most recent merger has created one of the world’s largest airlines, under the United brand with Continentals livery. Though fewer airlines in the market could mean higher prices because of less competition there is a sufficient number of other airlines operating in the US to keep up competition. This merger also is beneficial for member airlines of Star Alliance since now 2 of the top 5 US airlines are members. This merger is viewed as a new profit opportunity of both airlines, which together now serve 370 destinations, with all these destinations served it, is hoped that the airline will attract more business travelers who are more likely to purchase more expensive seats. With all the competition in the US market consolidation of major airlines is viewed as an attempt to stop the past price wars.