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.

Copyright 2010 Hawaii News Now. All rights reserved.

  • Hawaii News Now headlinesNewsMore>>

  • Germany extends facial recognition test at rail station

    Germany extends facial recognition test at rail station

    Friday, December 15 2017 7:45 AM EST2017-12-15 12:45:42 GMT
    Monday, December 18 2017 2:32 AM EST2017-12-18 07:32:19 GMT
    Germany's top security official is extending tests of automatic facial recognition technology after an initial six-month trial showed the system had a good success rate.More >>
    Germany's top security official is extending tests of automatic facial recognition technology after an initial six-month trial showed the system had a good success rate.More >>
  • Forecast: Mostly clear skies, some vog ahead of strong cold front

    Forecast: Mostly clear skies, some vog ahead of strong cold front

    Monday, December 18 2017 12:04 AM EST2017-12-18 05:04:59 GMT
    Image: Hawaii News NowImage: Hawaii News Now

    Light winds and mostly clear skies are in the forecast for Monday, but an approaching cold front will combine with abundant moisture from the south to bring heavy showers and a chance of thunderstorms to most of the state by Monday night and Tuesday.

    More >>

    Light winds and mostly clear skies are in the forecast for Monday, but an approaching cold front will combine with abundant moisture from the south to bring heavy showers and a chance of thunderstorms to most of the state by Monday night and Tuesday.

    More >>
  • Flash Flood Watch to take effect Monday night

    Flash Flood Watch to take effect Monday night

    Sunday, December 17 2017 10:58 PM EST2017-12-18 03:58:55 GMT
    Image: Kevin Olson/FileImage: Kevin Olson/File

    Abundant moisture ahead of a slow-moving cold front could result in heavy showers and thunderstorms starting Monday night for Oahu, Maui County and the Big Island. 

    More >>

    Abundant moisture ahead of a slow-moving cold front could result in heavy showers and thunderstorms starting Monday night for Oahu, Maui County and the Big Island. 

    More >>
Powered by Frankly