United, Continental conclude agreement to merge - Hawaii News Now - KGMB and KHNL

United, Continental conclude agreement to merge

Jeffery Smisek and Glenn Tilton Jeffery Smisek and Glenn Tilton

CHICAGO and HOUSTON (HawaiiNewsNow) - United Airlines and Continental Airlines have concluded a $3 billion merger agreement that will produce a new world's largest airline.

Agreement came after a final meeting Sunday of the Continental board and was announced Monday morning in a news release issued simultaneously in Chicago and Houston.

Key details of the agreement confirmed source reports:

  • UAL stock will be valued five cents more on the dollar.
  • UAL shares will make up 55% of shares in the new airline.
  • The United name will survive and United headquarters in Chicago will be kept.
  • Continental CEO Jeff Smisek will run it, while United CEO Glenn Tilton becomes chairman with a two-year contract and no executive powers.

One detail that hadn't appeared earlier in source reports: while the United name will be kept, the new airline will use the Continental colors including the globe logo on the tail.

The merger requires federal regulatory approval and the corporate deal is not expected to close until later in the year. Operational merger could take much longer.

United flies to Hawaii from Chicago, Denver, San Francisco and Los Angeles and has more seats to Hawaii than any other carrier. It is the busiest U.S. airline in Asia and second busiest, after Delta, at Tokyo Narita.

Continental flies to Hawaii from Los Angeles, Houston, Newark and Guam, and has extensive connections between Hawaii and the rest of the Pacific through its Micronesia hub in Guam.

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