Both Continental Airlines and United Airlines are key players in Hawaii's tourism economy, so their $3 billion merger stands to have a significant effect on the islands. While the move could reduce the number of flights from the mainland and raise prices, the proposed company's new stability should have a net benefit for Hawaii and deserves approval by the U.S. Justice Department's antitrust division.

Both airlines have experienced financial problems in the past decade, with United undergoing bankruptcy proceedings that scared Continental away when the two companies came close to a merger two years ago. The two airlines lost a combined $933 million last year.

The two sides now have agreed to operate under United's name and Continental's colors and logo. The world's biggest airline will be based in United's Chicago headquarters. Continental is based now in Houston.

While the new company does not intend at this point to raise fares, industry observers say an eventual result of airline mergers is to reduce capacity. That cuts the number of seats and allows them to increase fares, especially on the few routes where both fly now.

“;Airlines are struggling to find a business model that makes sense,”; said Scott Sonenshein, an assistant business professor at Rice University. “;Consolidation gives them more leverage. As a consumer, you will have less choices, fewer routes, higher prices and more fees.”;

For example, both airlines fly nonstop now from Los Angeles to Honolulu and Kahului; there likely will be a net reduction in flights and seats. Elsewhere, the two airlines have few overlapping routes.

United has been Hawaii's largest user by far, flying 1.7 million passengers a year from Los Angeles, San Francisco, Denver, Chicago, Tokyo and Osaka and between neighbor islands. Continental flies fewer than 300,000 passengers to Hawaii from Los Angeles, Houston, Newark and Guam.

The two airlines now serve 31 destinations in Asia and the Pacific, nearly double those of its nearest competitor, Northwest Airlines. Continental has a subsidiary in Micronesia and United has a hub at Tokyo, but they reportedly have no overlapping routes in the region.

One key to the new United-Continental model will be a renewed focus on the business-travel market. The new combined network of flights across the U.S. and around the world is hoped to attract enough corporate travelers to boost revenue by up to $900 million annually.

That could have big trickle-down benefits for Hawaii's tourism industry, from more convention and trade business, to increased hotel bookings, to post-business vacation extensions.

Across the board, the isles' top industry needs to position itself to cultivate this anticipated growth market.