That first glimpse of the airport arrivals and departures board can be a little unnerving if you’ve got a tight window on a connecting flight. Well, that must be how Northeast Ohio business travelers and economic development folks alike are feeling after Continental Airlines’ proposed stock swap merger with United Airlines, which would create the world’s largest airline (and likely more connecting flights).
These days, two out of every three flights leaving Cleveland Hopkins Airport come courtesy of Continental Airlines’ hub. The company promises its merger with United “places Cleveland in a better position than what Continental could as a standalone carrier,” says Continental spokeswoman Julie King. Customers will gain access to more destinations on a single carrier and the airport will process more passengers.
Industry experts recommend optimism remain on standby. A post-merger United might decide it’s more profitable to downgrade or eliminate the hub. In the meantime, here’s what you can expect from the merger.
Business Travelers
After the restructuring, business travelers flying to United’s current hubs — including Los Angeles, San Francisco, Denver, Washington and Chicago — may see fares rise due to reduced competition, airline economist Pablo T. Spiller projects.
The hub may still be an asset to local business travelers by increasing their options, he says. “It provides more frequent flights and more convenience.”
Losing hub status would mean losing nonstop flights to multiple destinations, and gaining layovers and inconvenient travel times.
If you belong to Continental’s OnePass or United’s Mileage Plus, the transition to one loyalty rewards program should have only upside.
“Frequent fliers will have more opportunities to earn and redeem miles across the network,” Continental spokeswoman Julie King says, referring to the 370 destinations connected by the new carrier and even more within the Star Alliance. No member’s miles are expected to be lost, although the exact details are being worked out.
By cashing in miles to get perks like seat upgrades or lounge access, business travelers can recoup the price differential of a cheaper airline, Spiller says.
For now, Cleveland Hopkins will become one of eight national hubs, but the size and proximity of fellow hubs Chicago and Newark, N.J., threaten to reduce Ohio’s largest airport to a spoke. That’s the fate St. Louis suffered. In April, American Airlines jettisoned its hub there after scaling back service since 2001.
“Cleveland should be nervous,” says Dean Hill, an aviation industry consultant who previously worked for Delta Air Lines. “If there’s a way to shift traffic to O’Hare, it argues to downsizing Cleveland even more.”
Airmall operator BAA had to come up with a solution after US Airways pulled its major hub from Pittsburgh, and it’s one BAA president Mark Knight will try in Cleveland to ensure its dozens of retailers and restaurants succeed even if the hub doesn’t.
Maximizing passenger spending — by guaranteeing mall prices and offering a mix of respected local and national stores and eateries — can reduce the impact of losing the consumers a hub delivers. This worked in Pittsburgh, which Knight says generates the most Airmall spending per person.
And Knight remains optimistic Cleveland’s hub will stay: “I’m not sure O’Hare can handle all that capacity.”
If he’s right, Airmall will see a spike in shoppers and the global visibility of local brands like Great Lakes Brewing Co. and the Rock and Roll Hall of Fame, he says.