United Airlines and Continental Airlines have announced that they are merging in a deal for nearly $3 billion making it the world’s largest airline, AP reported. The new carrier will surpass Delta Air Lines in fleet size and total number of flights served. The merger must be first approved by the shareholders and regulatory authorities. The joint airline will be called United Airlines and will be headquartered in Chicago. The annual revenue of the combined company is estimated $29 bn.
The merger will have a stabilizing effect on the air transport sector, which is recovering from the economic crisis, experts predict. Stagnation lead to reduced demand and forced air carriers to shrink their business.
The two airlines, both part of the Star Alliance, currently fly 144 million passengers a year to 370 destinations in 59 countries worldwide.
The new combine will fly in Continental's livery, carrying the United branding.
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