Major Airlines Announce Merger

Monday, May 03, 2010

United Airlines and Continental have announced a $3 billion merger that will create the world's largest airline carrier.

The new company, United Continental Holdings, Inc., will combine the operations of both airlines while keeping Continental's logo. According to the company's website, the new airline would serve more than 144 million passengers annually, offering flights to 370 destinations in 59 countries. The company said it would maintain domestic hubs in major U.S. cities, including Chicago, Houston, New York and Los Angeles, as well as expand operations locally and internationally.

According to The Associated Press, the new airline would become the nation's largest, overtaking Delta, if the deal is approved. While the plan has already been authorized by the executive boards of both companies, it still needs to be approved by shareholders and federal regulators.

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