United, Continental merger could raise airfares

Consumers probably have more to lose than gain from a merger of United Airlines and Continental Airlines.

The two airlines have already entered into code-sharing agreements and a frequent-flier alliance that provide travelers with many of the benefits of a combined airline. But if the merged airline cuts capacity, it could lead to higher fares and reduced service in some markets.

The consumer impact "is mainly bad," says Ed Perkins, a columnist with SmarterTravel.com. "If you look at what the financial people are saying, the whole purpose of the merger is to reduce competition so they can raise fares. The airlines put up a smokescreen about seamless service and more destinations, but they already do that through these worldwide alliances."

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