Star Alliance carrier United Airlines and Continental Airlines have confirmed plans to merge, under a holding company known as United Continental Holdings.
Merger will be achieved by a stock swap, with Continental shareholders receiving 1.05 shares of United stock for each share in Continental.
United shareholders would own around 55% of the equity of the combined company and Continental shareholders would own approximately 45%.
Aircraft will operate under the United Airlines brand but with Continental's livery and logo.
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The airlines expect net synergies of $1-1.2 billion from their combination.
In a statement they say they have reached a "definitive merger agreement", which will create an airline serving 370 destinations.
United chief Glenn Tilton will be non-executive chairman - through to the end of 2012, or the second anniversary of closure, whichever is later - while the merged carrier will be headed by Continental chief Jeff Smisek.
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Smisek will also take over as executive chairman at the end of Tilton's term. The board will have 16 members, including six independent directors from each of the two companies and two union directors, required by United's charter.
On a pro forma basis, the combined company would have annual revenues of some $29 billion based on 2009 financial results.
- Flightblogger: In pictures - United and Continental fleets
Source: Air Transport Intelligence news
