United, Continental plan merger to become world's largest airlineThe new airline would jump past Delta Air Lines in size. But first it will need approval from shareholders and antitrust regulators.
By: Joshua Freed and David Koenig, AP Airline Writers
United and Continental Airlines say they're joining to form the world's largest airline in a deal worth about $3 billion.
The new airline would jump past Delta Air Lines in size. But first it will need approval from shareholders and antitrust regulators.
The announcement today says the new carrier will keep the United name and be based in Chicago. The planes will keep the Continental colors and logo, with the United name.
The companies say Houston will be the biggest hub. The airline will be run by current Continental CEO Jeffery Smisek. United CEO Glenn Tilton will be chairman.
The new parent company will be United Continental Holdings Inc.
The companies say the combined airline will have revenue of about $29 billion.
It's a stock-swap deal that will leave current United shareholders with about 55 percent of the company, and Continental shareholders with the rest.