United’s Board Approves Merger With Continental

Source: The New York Times

The parent company of United Airlines, and Continental Airlines are expected to announce on Monday that they agreed to merge in a deal valued at more than $3 billion, people familiar with the discussions said.

The transaction would create the world’s biggest airline. The board of the UAL Corporation, United’s parent, approved the all-stock transaction to buy Continental on Sunday, these people said.

Continental’s board is also scheduled to meet later on Sunday to approve the deal, according to the people familiar with the talks, who still cautioned that things could still fall through in the final minutes. It is expected to close in the fourth quarter.

The carriers would have a leading presence in the top domestic markets, including New York, Chicago, and Los Angeles, along with an extended network to Asia, Latin America and Europe.

Read more: http://www.nytimes.com/2010/05/03/business/03merger.html?partner=rss&emc=rss

Free markets, gotta love 'em. They are the gateway drug to monopolies.

The problem is not the laws, but the people who administer them.

That said, the airline industry remains quite competitive, as evidenced by the entry of new competitors without legacy costs such as those borne by the likes of UAL and Continental.

Source: Associated Press

United Airlines and Continental Airlines agreed to combine in a $3 billion stock swap to create the world's biggest airline, people with knowledge of the deal said Sunday.

The transaction will test the notion that the money-losing airline business can work better on a large scale. Corporate travelers love a wide choice of departure times and a worldwide network, and the combined United and Continental will have flights reaching from Shanghai to South America.

The transaction is to be announced Monday morning after it gained approval from both airlines' boards Sunday, the people said. They declined to be identified because the transaction hasn't been announced.

The companies are expected to describe it as a merger of equals. But travelers will see more of United once the deal closes. The United name will live on and the headquarters will be in Chicago, United's hometown. United shareholders will own about 55 percent of the combined company, the people said.



Read more: http://www.msnbc.msn.com/id/36904325/ns/business-us_business/

The MSM pretends this will be a good thing for passengers, while time will show that they're going to dramatically cut routes and workers to decrease the supply of seats, so that prices can be raised to feed upper management with all the money they could have ever dreamed of. This is bad for consumers, and may be bad for the two companies as United is HORRIBLE at managing change, and many airlines don't survive mergers.

The combined airline will be lead by Continental's CEO; they're using Continental's globe log and Continental's type-font. Why are they calling it United?

To form the largest globally shitty airline in the shitty skies.

Can't wait!

:woohoo:

Not to mention Cleveland and Newark will probably lose their Continental hubs and many jobs in the process.