While deregulation allowed Continental to expand into new areas, it hurt the company's existing business as consumers were for the first time able to choose lower fares over Continental's better service. In 1978 Continental and Western Airlines, which held a nearby headquarters and similar fleet, began a nearly three-year attempt to merge. The route systems would have been complementary, with little overlap; although they both served the Western states, Continental had strength in Hawaii, southern-tier and the Great Plains states; Western's strengths were in the California intrastate market, Alaska, Mexico, and the Intermountain West. Both airlines served the Pacific Northwest and Rocky Mountain states, but along different routes from Los Angeles, Denver, San Francisco, Seattle and Phoenix. The merger attempt failed when Texas Air Corporation interceded with its acquisition of Continental. With the Airline Deregulation Act the world changed for Continental as noted by Smithsonian historian R.E.G. Davies: "Unfortunately, the policies that had been successful for more than forty years under (Robert) Six's cavalier style of management were suddenly laid bare as the cold winds of airline deregulation changed all the rules -- specifically, the balance between revenues and expenditures."