United and Continental airlines are close to agreeing on merger
April 29, 2010
(ChattahBox) – United and Continental airlines after secretly meeting for a week, are expected to announce on Monday that they will merge to create the world’s largest airline by traffic. Continental’s board of directors reportedly met yesterday to discuss a possible merger with United. According to several outlets, the two airlines remain optimistic about reaching a deal despite differences over the share-price ratio in an envisioned stock-swap transaction. According to The Wall Street Journal, the United board is meeting again Friday while the Continental board is meeting on Friday and Sunday. The new company will retain the United brand and be based in Chicago, but Continental CEO Jeff Smisek will be running the company. The AP writes “analysts say that United’s hubs in Chicago and San Francisco would complement Continental’s in the New York City area and Houston. Internationally, United has strong routes in Asia, while Continental has a deep network in Latin America and Europe.