Guam – United Continental Holdings has formerly merged with UAL Corporation.
The official announcement was made in Chicago Friday after shareholders voted to approve a combination of their companies that will create the world’s biggest airline.
Continental Micronesia has been Guam’s single largest employer. Now, theContinental Micronesia name has been officially retired and the United name is replacing it. However, the Continental logo will remain in use.
By 2013, the new company expects to generate up to $900 million more a year in revenue than the two generate today and realize up to $300 million in cost savings.
The Chicago Sun-Times quotes Northwestern University’s Management School Professor Thomas Lys as saying that “on paper, combining United and Continental makes sense financially and operationally,” but he warned that the “integration phase of this is not going to be that simple.”
Lys said that “Airlines … have complex financial structures. And there are huge labor and operations components that will have to be harmonized in order for those efficiencies to be obtained.”