Continental Airlines and United Airlines Merger Approved
On Friday, the merger of Continental Airlines with United Airlines was approved by shareholders in both airlines; making the combined companies the largest air carrier in the world.
The decision passed with over 98 percent of both company's shareholders in agreement. The airlines expect to complete the union of their operations sometime within the next 18 months and anticipate between $1 billion and $1.2 billion USD in revenue and cost benefit by the year 2013.
The new company will fly under the banner of United Airlines and will be based in Chicago Illinois USA. Jeff Smisek, a Continental chief executive will take his place as CEO, while Glenn Tilton, chief executive of UAL, United's parent company, will serve as a non-executive chairman.
"We would have a company that would be an investable company, a leading company and we've created what has every opportunity by almost every imaginable measure to be the best company in the industry," Mr Tilton told reporters.
In a statement, Mr Smisek, said, "In approving the transaction, our stockholders recognised the value of bringing together Continental and United to create a platform for increased profitability and sustainable long-term value."
According to experts one of the reasons for the airline industry's recent plights is over capacity. Mr Tilton, an advocate of airline consolidation also says that carriers need to invest in more cross-border partnerships.
Both airlines currently have regularly-scheduled flights from the UK to such destinations as Anchorage, Dallas Fort Worth, and St Maarten.
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