United and Continental Airlines Agree to Merge

United and Continental Airlines made it official today, announcing the two companies will merge and become the largest airline in the world based on total volume. In a statement to customers, United said the companies are expected to combine later this year, pending governmental approval. Until then, the companies remain independent and will continue to compete with each other. The airlines have set up a new website which discusses the combined airlines and shows off its livery; note the Continental globe with the United brand name is proposed in this illustration.

U.S. Airways: We Have Discontinued Merger Talks With United

The Wall Street Journal is reporting U.S. Airways has discontinued talks with United Airlines about a possible merger. "After an extensive review and careful consideration, our board of directors has decided to discontinue those discussions," U.S. Airways Chairman and Chief Executive Doug Parker said in a statement. Attention now turns to ongoing speculation that another Star Alliance Member - Continental Airlines, may be in merger talks with United.

Midwest + Frontier = Frontier Airlines

In a live web feed today, Midwest and Frontier Airlines announced the two combined brands will become one: Frontier Airlines. The combined airline will, "keep the best of both what is Frontier and Midwest," said Bryan Bedford, Chairman of the parent company, Republic Airlines. Republic purchased both airlines last year, but until now had not announced which airline brand would be scrapped. Frontier currently operates nonstop flights between SFO and Denver, and seasonal flights SFO to Milwaukee. Meanwhile Midwest offers a daily flight between SFO and Kansas City.

The integration of two airlines is expected to take 12-18 months.

More information, including FAQ's on the combined airlines can be found here.

Earn 900 Northwest Frequent Flyer Miles In Ten Minutes

Special thanks to Andy for this timely reminder.

In the past we reported on earning 400 easy frequent flyer miles for completing WorldPerks University online quizzes, which consist of answering a few multiple choice questions about the Northwest Airlines frequent flyer program. If you haven't completed the quizzes yet, now is a great time to do so. 

In addition, with the Delta/Northwest merger already in progress, you can earn 500 Delta miles for linking both your Delta and Northwest accounts together - then, turn right around and transfer those miles back to your Northwest account, fee free. The linking bonus runs through April 30. 

These combined activities will net you 900 Northwest Miles. Not too shabby for 10 minutes of work! 

British Airways Considers Qantas Partnership

Today British Airways announced they are in partnership talks with Qantas, Australia's largest airline. Although British Airways officials cautioned no guarantee a deal can be reached, both airlines are reportedly working toward a "complete and permanent merger." Read more from the New York Times.

Government Approves Delta and Northwest Merger

The U.S Justice Department approved a merger between Delta and Northwest Airlines today, the final regulatory hurdle that creates one of the world's largest airlines.  Although the merger was announced several months ago, airline execs had to convince the government the merger would not cause substantial harm to consumers, such as significantly lessening the competition. And that they did. 

The merged airlines will combine flight schedules and loyalty programs over the next two years. According to a Delta press release, for customers, it will be business as usual during the process - as changes will be "thoughtfully" rolled out. 

American and British Airways To Team Up

British Airways announced a deal that partners up with American Airlines, allowing both carriers to operate together, fixing routes, schedules and fares throughout the United States, Canada, Mexico and Europe. Spain's Iberia Airlines, recently acquired by British Airways, is included in the partnership.

One hurdle for the airlines will be receiving government approval. They must convince the U.S. that the deal does not negatively impact consumers. European regulators will likely be concerned about the dominance the combined airlines will have at London's Heathrow Airport, where the two carriers control nearly half the take-off and landing slots to the United States.

Virgin Atlantic's Chief Executive Richard Branson is not so excited about the prospects of a combined airline; "Make no mistake, A BA/AA alliance would be bad for passengers, bad for competition and bad for the UK and US aviation industry". Branson has sent letters to Presidential candidates Barack Obama and John McCain urging them to say no to the proposed deal.

On the plus side, if the agreement is approved, travelers would likely see more booking options, including a wider array of destinations, easier hub connections and improved cooperation between the two frequent flier programs.

Continental To Join United's Star Alliance

Falling short of a merger, Continental Airlines announced they will join with United Airlines in an effort to battle against rising fuel costs. The two airlines will sell tickets on each of the two airlines and offer reciprocal frequent flyer benefits. Continental says it will be leaving the SkyTeam alliance as soon as possible. Read More.

Northwest & Delta become Delta Airlines

As expected, Northwest and Delta Airlines announced the two will merge and become the world's largest airline. The process of merging is expected to take 6-8 months, and is subject to government approval. Delta will retain the name for the new airline. The airlines have contacted members of their frequent flyer programs stating their frequent flyer miles and status will be unaffected by the merger.

Meanwhile, the airlines created a new website to boast of the new airline and positive effects they feel will result.

Delta, Northwest Merger imminent - source

It looks like the airline industry will continue to make headlines this week as a merger between Northwest and Delta is reported to be imminent. According to the Associated Press, people close to the merger talks said it may happen as early as Monday. If it does, the joined companies would result in the largest airline in the world.

The two airlines hoped to announce a deal in February, but their pilots' unions were unable to agree on how to merge their seniority lists. The airlines are now hoping to proceed with merger talks without compiling a list, a move that could potentially cause strong opposition to the merger by pilots.

Major airline shakeup brewing

UNITED-CONTINENTAL, NORTHWEST-DELTA MERGERS COULD REMAKE INDUSTRY
(San Jose Mercury News)
Four major U.S. carriers, including United Airlines, appear closer to consummating deals that would radically remake the airline industry, people close to the airlines say. Chicago-based United is in merger talks with Continental Airlines and is poised to seal its deal if Delta Air Lines and Northwest Airlines combine first, sources say. The deals could be announced in rapid succession as early as this month, if carriers can resolve a host of issues, ranging from fights over how to share the executive suite to offering concessions to labor. Read More

Northwest, Delta close to joining, source says

(Associated Press)
ATLANTA - Delta Air Lines and Northwest Airlines are inching closer to a combination that would create the nation's largest carrier, and if a deal is reached it could be announced next week, a person briefed on the discussions told The Associated Press on Wednesday.
Read more here.

Delta Reportedly Begins Merger Talks With United, Northwest

(CNNMoney) Delta Air Lines has opened merger talks with Northwest Airlines and UAL Corp.'s United Airlines in the hope it can close a deal over the next two weeks, the Wall Street Journal reported on Tuesday. Read more

Airlines Cut Costs to Offset Fuel Prices (Associated Press)
The airline industry has been laying out plans to offset rising fuel prices and a possible economic slowdown. These plans include halting the expansion of domestic routes, merging of companies, and selling off freqeunt flyer programs. Full Story

Report: United considering a merger, passes on Delta.
After a firm statement from United Airlines denying merger talks with Delta Airlines, Business Week is reporting a merger between some other airline may be in the works.
Meanwhile, UAL chief says a industry merger would be a plus.