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May 3rd, 2010
12:00 PM ET

United and Continental to merge

By Aaron Smith, CNNMoney.com staff writer

NEW YORK (CNNMoney.com) – UAL Corp.'s United Airlines announced on Monday it will merge with Continental Airlines in a deal worth $3.2 billion, creating the world's largest airline.

The combined company, which will fly under the United moniker and Continental logo, is now larger than Delta Air Lines (DAL, Fortune 500), which became the country's largest airline when it merged with Northwest Airlines in 2008. It is expected to serve more than 144 million passengers per year and fly to 370 destinations in 59 countries.

"Combining these two companies is the best way to position ourselves ... to thrive in the changing and competitive airline [industry,]" said Jeff Smisek, chief executive of Continental, in a press conference with Glenn Tilton, chief executive of UAL Corp. "Continental is strong where United is weak; United is strong where Continental is weak. Putting these two carriers together is a match made in heaven."

Under the terms of the deal, Continental shareholders will receive 1.05 shares of United common stock for each Continental common share they own, the companies said in a statement. FULL STORY


Filed under: Business
soundoff (4 Responses)
  1. Dylan

    does anyone know if they will still be apart of the 5 star allaince or no?

    May 6, 2010 at 1:04 pm |
  2. lynn

    What about the employees? Waiting to hear if they get to keep a job is agony. Let us know something.

    May 5, 2010 at 2:00 pm |
  3. K. Giakouakis

    They say~ no FARE HIKES,
    only unFAIR hikes!!
    What do you think?

    May 3, 2010 at 12:56 pm |
  4. Tyler Cleveland

    I believe that this will be united and continental's downfall, this is just a play at getting back at Delta Air Line's for taking all of their customers away. I predict that this merger will go south within the first six months of progress just because of the many differences between the two carriers.

    May 3, 2010 at 12:39 pm |