United, Continental fliers to see merger changes start in 2011
UAL Corp.'s United Airlines and Continental Airlines Inc. are targeting early 2011 to start blending passenger-service operations as they merge to create the world's largest carrier.
Shared check-in kiosks and airport signs will appear next year in a process the companies call "Customer Day One" as the new airline adopts the United name. Operational changes such as joint websites probably won't occur until about 2012, when United gets a single flying certificate from U.S. regulators.
UAL and Continental shareholders voted on Sept. 17 to approve the $3.22 billion all-stock merger, which is scheduled to close by Oct. 1. The carriers are being advised by Bain & Co., the consultant Delta Air Lines Inc. hired to help mesh operations with Northwest Airlines Corp. beginning in 2008.
"On Customer Day One, Continental and United will be able to conduct key customer processes, such as airport check-in and upgrades, for any traveler, regardless of whether they are on a Continental- or United-operated flight," said Julie King, a spokeswoman for Houston-based Continental.
Passengers won't see many immediate changes when the deal closes, King said. The websites for both carriers will continue to operate as they do now, and each company will run its own customer-service and marketing activities, she said.
United's Mileage Plus and Continental's OnePass frequent- flier programs will operate independently until after the closing. Members' reward points will be combined, and the plans will be blended in the first half of 2011, according to the airlines.
Chicago HeadquartersUnited and Continental have decided to keep United's Chicago headquarters. They will incorporate Continental's globe logo on the tails when they repaint planes."As soon as your capability to operate as a single airline in the customer's eye is there, then I would start using the single name, the single brand," said Brett Snyder, an aviation consultant who writes the blog CrankyFlier.com.Continental Chief Executive Officer Jeff Smisek will run the company, while United CEO Glenn Tilton will become non- executive chairman.Planning for the integration is already under way, with about 30 groups working on aspects from accounting to technology, Tilton said in June.It took Delta about a year and a half to fully combine operations with Northwest after their merger in October 2008.Delta, NorthwestWithin a month, Delta and Northwest began aligning customer policies and fees for services such as taking pets onboard. The first Northwest airplane was painted in Delta colors that December.Delta installed new signs with its name and logo at all major hubs by March 2009, and the companies were granted a single operating certificate from the Federal Aviation Administration in December, which allowed them to integrate pilot groups and flight procedures.They combined websites and reservation systems in January, and finished meshing technology and dispatch systems in April.At United and Continental, bigger operational changes such as joint websites, reservation systems and decisions on airplane purchases may not happen until early 2012 when the companies receive their single operating certificate from the FAA.The most important thing about a merger is getting to the point where customers can "have a similar experience throughout the process," consultant Snyder, who is based in Long Beach, California, said in a telephone interview.United and Continental customers will start to see a more unified product in early 2011 as the airlines bridge airport kiosks and check-in, King said.The airlines haven't determined timing for specific moves such as changing airport-gate or ticketing-area signs, she said.United and Continental had $29 billion in combined revenue last year. They have about 700 jets in their main fleets and employ 88,000 workers. The carriers predict as much as $1.2 billion in savings and new revenue from the merger.