Continental/United Merger (Houston: buy, living in, commuting)

[Vicman]

TVC15: I wasn't saying that the government forbids airlines from setting prices. The market forces airlines to keep prices low. If one airline tries to raise prices, people using Orbitz or Travelocity will simply choose another airline with the lower price. That is how airlines are forced to have similar prices.

If Continental and United merge, that is one less airline, and it makes it more likely for airlines to raise fares.

[quote=TVC15;14031253]

Originally Posted by Vicman

The airlines put fees in because they couldn't raise prices. They can make however much money they want from fees, but the reason why they have the fees to begin with is a lack of pricing power.


>That is an incorrect statement. Airlines can set their fares to whatever they want. After the airlines were deregulated in 1978 they were free to set their own fares once the CAB was dissolved. It allowed competition...one of the main goals of the 1978 Deregulation Act.

Air Transportation: Deregulation and Its Consequences (http://www.centennialofflight.gov/essay/Commercial_Aviation/Dereg/Tran8.htm - broken link)

Airline Deregulation: The Concise Encyclopedia of Economics | Library of Economics and Liberty

[TVC15]

[quote=Vicman;14034684]TVC15: I wasn't saying that the government forbids airlines from setting prices.

[jchiguy1]

Hi everybody. I have been following the interesting comments on this thread for sometime and, as a lifelong resident of Chicago, wanted to clarify a few stats about my town that have been mentioned here. One, while the Port of Houston is second largest in the country by tonnage, Chicago is the world's third largest intermodal port (cargo moved by ship, plane, train and truck) in the world behind Singapore and Hong Kong. We also have 28 Fortune 500 companies headquartered in the Chicago area which include Kraft, Walgreens, Abbott Labs, McDonalds, Motorola, Boeing and United among many others. In addition to those companies we have many privately held firms such as Miller/Coors that would qualify for the list if they were publically traded.

I travel to Houston often and admire the business climate and the low cost of operating there, however Chicago still has the muscle and prestige of being a world class financial and transportation center. Downtown Chicago also offers far more attractions than downtown Houston; imagine the Galleria, Museum Circle and all of downtown Houston combined into one. Michigan Avenue, the Loop and great museums, shops, restaurants and other attractions are all an easy walk from each other. Houston still can grow and mature into that type of city but it simply is not there yet.

[jcash]

Originally Posted by jchiguy1

Hi everybody. I have been following the interesting comments on this thread for sometime and, as a lifelong resident of Chicago, wanted to clarify a few stats about my town that have been mentioned here. One, while the Port of Houston is second largest in the country by tonnage, Chicago is the world's third largest intermodal port (cargo moved by ship, plane, train and truck) in the world behind Singapore and Hong Kong. We also have 28 Fortune 500 companies headquartered in the Chicago area which include Kraft, Walgreens, Abbott Labs, McDonalds, Motorola, Boeing and United among many others. In addition to those companies we have many privately held firms such as Miller/Coors that would qualify for the list if they were publically traded.

I travel to Houston often and admire the business climate and the low cost of operating there, however Chicago still has the muscle and prestige of being a world class financial and transportation center. Downtown Chicago also offers far more attractions than downtown Houston; imagine the Galleria, Museum Circle and all of downtown Houston combined into one. Michigan Avenue, the Loop and great museums, shops, restaurants and other attractions are all an easy walk from each other. Houston still can grow and mature into that type of city but it simply is not there yet.

No body said very much about Chicago ... I will suggest you go home to your Chicago forum now.

[Sampaguita]

Originally Posted by jcash

No body said very much about Chicago ... I will suggest you go home to your Chicago forum now.

Well, that was unnecessary.

jchiguy1 offered some comments from a Chicagoan perspective without bashing Houston. That's more than I can say from many Houston residents!

[theSUBlime]

^ I know...jeeeze.

[jfre81]

jchiguy1 pretty much covered why the new HQ will be in Chicago. There is simply no debating any of that.

[stoneclaw]

Originally Posted by jchiguy1

Hi everybody. I have been following the interesting comments on this thread for sometime and, as a lifelong resident of Chicago, wanted to clarify a few stats about my town that have been mentioned here. One, while the Port of Houston is second largest in the country by tonnage, Chicago is the world's third largest intermodal port (cargo moved by ship, plane, train and truck) in the world behind Singapore and Hong Kong. We also have 28 Fortune 500 companies headquartered in the Chicago area which include Kraft, Walgreens, Abbott Labs, McDonalds, Motorola, Boeing and United among many others. In addition to those companies we have many privately held firms such as Miller/Coors that would qualify for the list if they were publically traded.

I travel to Houston often and admire the business climate and the low cost of operating there, however Chicago still has the muscle and prestige of being a world class financial and transportation center. Downtown Chicago also offers far more attractions than downtown Houston; imagine the Galleria, Museum Circle and all of downtown Houston combined into one. Michigan Avenue, the Loop and great museums, shops, restaurants and other attractions are all an easy walk from each other. Houston still can grow and mature into that type of city but it simply is not there yet.

When i first began to read your post, i thought you were actually about to add something meaningful to the discussion. I ended up pretty disappointed.

[Metro Matt]

Originally Posted by LAnative10

That has been known since the begginning of the merger talk. Houston might lose one bank of domestic flights, but they will not lose any destinations.

The hurt is for the city of Houston, not IAH.

I don't see how it will hurt the City of Houston. Continentals lease was up in their downtown office tower months ago, hence the reason their logo isn't projected on the roof with blue flood lights anymore.

They've been cutting back ever since this recession began back in 08.

I think you're meaning to say it will hurt Houston's image, which it won't.

[just4ivaylo]

We're losing a huge company. I don't think that's something that can be taken lightly.