Before the merger with the United Airline, Continental airline was ranked as the fourth airline in the United States of America. The airline had hubs in Houston, Newark and Cleveland. The airline had well established networks globally and operated over 2,700 flights daily in over 240 destinations. Some of its major destinations were in Europe, Northern, Central and Southern America as well as Asia. On the other hand, the United Airline was by then the third largest Airline in the United State of America. The airline had hubs in San Francisco, Denver, Los Angels and Washington DC. It operated more than 3, 300 flights daily to more than 230 destinations globally. The merger of the United States of America third and fourth largest airlines the United Airlines and Continental airlines formed the United States largest Airline Corporation referred as the United Continental Holdings, Inc. The brand of the new entity is delivered from the brands of its mother brands. The airline possesses the continental lively logo and colors with the United Airline name. The heard quarters of the United Continental Holdings, Inc is based in Chicago. The United Continental Holdings, Inc maintains a significant presence in Houston which is expected to be the airlines largest hub. That is the reason why the CEO of the entity opted to have its offices in both Houston and Chicago (Armin , 2010). It is noted that there are strong incentives for airline consolidations. This is because the economies of scale and scope provide larger airlines with the competitive edge over smaller airlines. This is because airline mergers facilitate airlines to lower down their costs of operations. Lower costs of operations enable the large airlines to offer their customers services at a discounted rate which enhances their demands greatly. Similarly, mergers of airlines have been known to reduce competitions and thus improve their market power especially on non-stop routes to and from hubs. The merger between the Continental Airline and the United Airline was not expected to affect the routes they were serving. The resultant merger is expected to continue operating in all the routes that the two airlines were operating. The merger is likely to increase the performance of the resultant airline greatly. The United Continental Holdings, Inc commands a 21% market share in the United States of the American air travel which makes it the largest airline in the United States of America ahead of the Delta Airline that commands a current market share of 20%. This makes the airline to enjoy the advantage of the scale of economies by cutting down its costs of services which in turn increase its demand considerably. The merger between continental airline and united airline had greatly helped the two airlines to reduce airline competition in the U.S. greatly especially in those routes they initially competed. Less competition will help the airline corporation to control the pricing of flight fares accordingly since customers do not have many alternatives. The merger is likely to see the customers paying more because the rationale for mergers is to reduce the capacity. This involves cutting down the number of seats in the industry and thus increasing airline fares. The merger is likely to bring overla