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United, Continental Airlines Merge
CHICAGO (AP) -- Regulators and shareholders still have to approve the $3 billion merger of United and Continental Airlines announced Monday.

The deal would form the world's largest airline, which would be based in Chicago and would continue to carry the United name.

The merger is expected to close in the fourth quarter.

The companies say United Continental Holdings Inc. will have revenue of about $29 billion.

The airlines say combining would save them up to $1.2 billion a year by 2013. That includes between $800 million and $900 million of new annual revenue, partly from increased international service.

Owners of United parent UAL Corp. will hold 55 percent of the combined company, with Continental Airlines Inc. shareholders owning the rest.

(Copyright 2010 by The Associated Press. All Rights Reserved.)
05 03 10 by Newsroom
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