Making United and Continental Fly in Formation

Executive Lori Gobillot’s calendar was jammed with 27 meetings and phone calls, some scheduled simultaneously. That’s pretty typical these days as she oversees almost three dozen teams of managers who—one decision at a time—are stitching together United and Continental to form the world’s largest airline. In technology alone, the carriers, which merged last October, have 1,400 separate systems, programs, and protocols. Workers from the two predecessor airlines are represented by different labor unions and subject to dissimilar work rules. Even the airplanes are mismatched. United’s fleet has first-class cabins; Continental’s planes have just business and coach. United Continental has told Wall Street that it can find $1.2 billion in new revenue and cost savings from the marriage within three years. That can only come from rationalizing operations and removing redundancies—and fast. So the pressure is on Gobillot, vice-president of integration management. “It’s such a complex, stressful, difficult experience,” she says. “But once you’re finished, you have exactly the house you want.”

The resulting megacarrier will ferry passengers between 373 airports in 63 countries, with major connecting hubs in New York, Chicago, Houston, San Francisco, Washington, Los Angeles, and Tokyo. United Continental is betting that its huge list of destinations—and a frequent-flier program that has more members than France has citizens—will lure high-paying business travelers from . The carrier’s sheer heft also suits an industry where economies of scale favor the big. Simply shaving a half-cent off United Continental’s per-mile operating costs would have boosted first quarter operating results by about $260 million.

Still, plenty of past airline mergers have hit turbulence that cut into hoped-for savings. Pilots and flight attendants at , a combination of US Airways and America West, are still operating under separate contracts with different pay rates, schedules, and work rules—almost six years after the merger. And Delta Air Lines remains bogged down in a labor dispute that’s kept it from equalizing pay and work rules for flight attendants and ramp workers at Delta and Northwest Airlines, which it bought in 2008. That’s why United Continental execs are so focused on the minutiae of the integration. “The guiding principle is: This is our once-in-a-lifetime opportunity. Let’s not blow it,” says Chief Executive Officer Jeffery Smisek.

What is the best credit card to have when visiting the Philippines ...

For the Philippines, especially, I would not bring cash or travelers checks, for the reasons mentioned already (good decision on your part!). I will add, though, that if accumulating air miles was not so important to you, and/or if you don’t get a credit card you want, you can survive quite well on a standard VISA or MasterCard debit card from your local bank.

Here’s the reasoning: For those times when you do need cash, credit cards charge exhorbitant fees and/or interest on the cash advances. A debit card will get the cash for you at only the normal exchange rate you’d get at any bank in the Philippines, and you could take as little as, say 2,500 PHP per ATM visit. And, as for purchasing anything otherwise, a debit card works as well as a credit card.

But, if you can get a credit card, I’d consider taking both – credit and debit – and ‘have your bases covered’. Then each could be used appropriately, as needed. (I’ve survived quite well on only debit card use for 3 Asian trips, and just accumulated air miles from the trip there and back.) Why not just buy your ticket online with the credit card for those extra air miles?

Visa and Mastercard are both widely accepted but a pain in the butt to actually use for purchases. typically places will ask for several IDs and will call to get an approval. things work slower here than you may be used to and this is not very convenient. the place you are purchasing from will typically charge a 8 to 10 percent service charge for using the card. i think this may be illegal but they still do it anyway. your bank may also charge you extra for using your card in a foreign country and may give you a lower exchange rate.

the philippines also has a lot of credit card fraud so you may wish to call your credit card company BEFORE YOU LEAVE TO COME HERE about your travel plans. your card may be restricted unless you do this.

i have found that using my american credit union’s ATM card to get cash to be the best way to pay for things here. ATM machines are widely available. not quite as many here as in the states but they arent too hard to find unless you are in a very remote area. my credit union charges me the exact exchange rate and no extra fees. again, you may wish to check with your bank before leaving. most ATMs take Visa, Mastercard, Plus and Cirrus.

I was on Biliran Island in Leyte for 10 months. They do not even know what a Master Card is there so I would say Visa. None of the banks or businesses there would accept a Master Card for a sale or cash advance or in an ATM machine. The casino’s ATM machine in Cebu would accept my Master Card, but most other ATM’s would not. Most banks would not either but I did find one that would.

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