United and Continental merged: what does this mean? Our thoughts:
1. Higher Prices 2. Lower Customer service.
It is a fact - anytime you eliminate competition from the market - you'll end up with higher prices. At this point -US Airways will have no choice but to combine with American - this will leave the USA with 3 major network carriers...this is dangerous. Sounds like the automobile industry. The "Big 3" American automobile companies got lazy, fat and guess what: Americans simply bought more imports and we know who now owns both GM and Chrysler (FYI: Obama)!
Well - foreign carriers cannot fly domestic USA route - so how is this going to happen? Replace "Import Automobiles" with Low Cost Carriers.
Southwest and other Low Cost Carriers will flourish. Network carriers are designed for one purpose: To ferry customers to their international hubs and fly them across the world. LCC's focus on simple, highly trafficked point to point routes. If you live in a major city you are safe: prices to other major cities should stay cheap. If you live in Fargo and you need to fly to Louisville: this will get more expensive.
What does this mean for AFCNET? We are optimistic. United is a big believer in specialty fares, nets and such. Continental is not. If the merge truly mean than United is the legacy, and Chicago remains its headquarters - its safe to say many of the pricing and revenue functions of the "New United" will remain with the old United formats. United does know how to run a profitable Pacific network, as well as a profitable joint venture on the Atlantic with its alliance partners. Continental was always the odd-man-out and therefore it did things its own way. It remains to be seen - but our belief is the Continental way of revenue and pricing will simply disappear under the new merger.
The new United Airlines International Network: (very impressive indeed!)
Our blog is here to keep you informed on the contracts and deals offered by AFCNET. We will continue to post up to the minute information on the airfare deals and niche airfare contracts that we receive.
AFC NET is an international airline consolidator that offers competitive NICHE airfares. We provide student, humanitarian, missionary and Consolidator airfare with superior service to the retail agency community.
If you are not a travel agent, contact one when planning for your next trip and ask for AFCNET products to make sure you do not pay any more than you have too!