Continental, United will form world’s largest airline

May 3, 2010 at 12:00a.m.

Associated Press

CLEVELAND

A merger between United Airlines and Continental Airlines Inc. would jeopardize the city’s airport as a hub, possibly leading to fewer direct flights and higher ticket prices, business leaders say.

Continental’s hub at Cleveland Hopkins International Airport would be the smallest of eight U.S. hubs in the merged airline. An announcement on a merger could come today.

Rob Turk, executive vice president of Professional Travel in North Olmsted, the largest corporate travel agency in the region, said a merger would change flight operations and, if history is any indicator, that would mean route cuts and price increases.

Many of his customers frequent core markets in cities such as Phoenix, Las Vegas and San Francisco.

“Because of our Continental hub status, we reach those markets non stop,” Turk said.

Business leaders say fewer direct flights out of Hopkins would cost them time and money.

William Christopher, who heads Alcoa’s operations in Cleveland, said Hopkins has been a good fit for the aluminum company’s travel needs.

“Nonstops are incredibly important because it makes the travel substantially more time efficient and more predictable,” he said.

The Cleveland Clinic, the region’s biggest employer, booked 15,000 business trips in 2009, most of them for doctors headed to conferences and meetings.

“Direct flights are more efficient and I think that’s been important for our folks traveling,” said Clinic spokeswoman Eileen Sheil. Losing them would reduce convenience but probably not the level of business travel by Clinic employees, she said.

Rob Kneen, owner of Traveline in Willoughby, said he isn’t too worried that a merger will worsen service at Hopkins because of simple supply and demand.

Flights on popular routes are often full, he said. But the new airline’s dominance on routes as Cleveland to Chicago could push out competing carriers, and that could end up raising prices.

But Kneen says he’s confident Continental’s leaders will be careful not to alienate northeast Ohio customers.

If they combine, United and Continental would leapfrog over Delta Air Lines Inc., which became the world’s largest airline when it bought Northwest in 2008.