題組內容

1. Please read the information below and answer the following questions.

The World's Largest Airline

United Airlines and Continental Airlines announced a $3 billion merger to create the world's biggest

airline. The new airline will be able to better compete with low-cost domestic and foreign airlines.

Travelers could face higher fares, although the merged airline has no such plans. But one rationale for

any merger is to cut capacity.

                                                                       Source: The New York Times, June 7, 2010

c) Explain how this airline merger might influence air travel production costs.