Airline Maniac

If all the recent cuts weren’t enough, more airlines have now announced that they will be reducing service to cope with higher fuel costs. Unfortunately, these reductions also represent loss of jobs.

Continental Airlines has decided to lay off about 3,000 people. In the process, they will get rid of 67 aircraft. The cuts represent about 16% of Continental’s total fleet.

United Airlines has taken more drastic measures, cutting the size of it’s fleet by more than 20%. The airline will get rid of 100 planes and more than 1,000 jobs. The planes that will be cut will include United’s Boeing 737’s, most of which are more than 15 years old.

United Airlines has desperately been seeking a merger partner in the last few months. First they flirted with Continental Airlines. Continental reviewed there options, and decisively replied with a “no”. With their tail between their legs, United approached US Airways. Interestingly, it seemed like United had found it’s merger partner. US Airways had merged with American West Airlines in 2005 and was also considering a merger at the time.

After weeks of intense negotiations, something odd happened. United backed up. They told the public that “issues that could significantly dilute benefits from a transaction” had caused them to change there mind. With this in mind, it seems as the only merger from 2008’s “Merger Mania” that could possibly be completed will be the Delta-Northwest one.