Alaska Cruises Reviews - United Continental Merger to Create World's Largest Airline

Operations would cover flights to 370 cities in 59 countries. The merger would save the airlines around USD 1 billion annually. Management would be from both sides, after the United Continental merger. While Continental shareholders would end up owning the remaining 45%, united shareholders would own 55% of the merged company. And this deal is like a personal success for him, glenn Tilton took over United in 2002 when it was on the verge of bankruptcy. Smisek would become the executive chairman, later. Would remain for two years, glenn Tilton, united's chairman. And would be based in Chicago, be headed by Continental's chief executive Jeffery Smisek, the name would be United. Continental is being bought by United Airlines.

And give them more leverage, which will allow them to save a lot of costs, also another reason would be that now both United and Continental will not be in competition against each other. So as to increase fares, which reduces the number of seats in the market, and the idea behind the merger is to cut capacity, the new company does not plan to increase fare prices.

A point to note is that Continental was close to buying off United a couple of years ago. And their very survival is a matter of concern, have now been left alone, which had earlier had their own talks with United regarding a merger, it is believed that US Airways. While one time market leader American Airlines would fall to third place, delta Air Lines would be pushed to second place in the US with a market share of 20%. And globally they would enjoy a market share of 7%, united and Continental have a combined market share of 21% in the United States.

The acquisition is being valued at USD 3.17 billion. The complete United Continental merger is expected to be done by the end of the year. This new merged entity will replace Delta Air Lines as the top carrier in the country. And a good things is that United's pilots' union has shown that they are not at all opposed to a deal with Continental, it also needs the backing of employee unions. Both airlines need approval from the Justice Department's antitrust division, for the deal to go through.