Continental and United announce Merger

Continental Airlines and United Airlines have announced their agreement  to combine in a merger of equals. The combined company will create the world’s leading airline, providing unmatched benefits and service for business and leisure travellers and enhanced opportunities for our clients in corporate and retail travel.

The new airline, to be called United Airlines, with Continental’s livery, logo and colours, will offer exceptional international gateways to Asia, Europe, Latin America and the Middle East from anywhere in the United States. The new airline will have ten hubs, including hubs in the four largest U.S. cities. The combined company will also continue to provide service to all of the communities that Continental and United currently serve, which encompasses 370 destinations in 59 countries.

For travellers, they will offer the industry’s leading loyalty program, providing access to more benefits than any other program, with more ways to earn and redeem miles. As members of Star Alliance, they will provide loyalty program members with the opportunity to use miles for award travel with partner airlines to more than 1,000 destinations around the world.

Although announced on Wednesday 5th May 2010, the merger is expected to close only after it is approved by shareholders, undergoes regulatory clearance, and certain other closing conditions are met. The airlines are working to obtain these approvals and clearances efficiently and hope to close the merger in the fourth quarter of this year.

Until then, they will each operate as independent companies, each focused on driving improvements in their respective businesses.