Sunday, May 2, 2010

Continental and United Merging

Continental and United airlines have agreed to merge that will create the world's largest airline.

What this means? The new carrier will be based in Chicago and take on the United brand. Continental shareholders get 1.05 United shares for each Continental share they own. Jobs will be cut by attrition (probably in administration and reservations), retirement, and voluntary programs. Experts believe the deal will lead to higher price fares for travelers. Frequent flyers could benefit from combining mileage rewards from both carriers.

The merger is expected to close by year's end, pending shareholder and regulatory approval.

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