Monday, UAL Corp.'s United Airlines made the official announcement that they will merge with Continental Airlines to create the largest airline in the world. The $3.2 billion deal will create an airline larger than Delta Airlines, and they will serve over 144 million passengers in 59 countries. The merge has been in the works for months, but was officially announced Monday.
"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. "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."
According to a statement released by the companies:
“Continental shareholders will receive 1.05 shares of United common stock for each Continental common share they own.”
“United shareholders would own approximately 55% of the combined company and Continental shareholders would own approximately 45%.”
Continental and United Airlines will now fly under the United moniker and Continental logo.
If you enjoyed this article, please click on the subscribe button above to receive an email when new articles are published by this examiner.
Sources: CNN Money and the Associated Press
If you enjoyed this article, please click on the subscribe button above to receive emails when this examiner publishes new articles.
Other articles from this examiner:
Gulf of Mexico oil spill will reach US coastline by Friday night (photos)
Prime Minister Gordon Brown calls voter a bigoted woman and apologizes later
Coast Guard may set oil spill from rig on fire Wednesday
10-year-old girl lives after being stung by deadly box jellyfish
6.5-magnitude earthquake hits Taiwan, no injuries or tsunami reported
Europe seeks “Single European Sky” program sooner than expected after ash cloud shut down airports
European airlines financial loss greater than US over ash cloud flight cancellations
Comments