United & Continental Close Merger

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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.”

Read the report in the Chicago Sun-Times

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.”

 

UNITED AND CONTINENTAL CLOSE MERGER

WHAT:
United Continental Holdings, Inc., formerly UAL Corporation, announced today that a wholly owned
subsidiary has merged with Continental Airlines, Inc. to create the world’s leading airline with an
unparalleled global route network, a commitment to superior products and services for customers,
a platform for improved profitability for shareholders and a Working Together culture that creates
an environment where employees enjoy coming to work.
WHO:
Jeff Smisek, president and chief executive officer of United, will conduct a telephone briefing to
discuss what the merger closing means for customers, employees, shareholders and communities.
WHEN:
Friday, Oct. 1, 2010
9 a.m. CT/10 a.m. ET
PHONE:
For callers within the U.S., call 800-901-5247. For callers outside the U.S., call 617-786-4501.
Refer to passcode 93125315.
The conference call will be broadcast live at UnitedContinentalHoldings.com > Media Center
beginning at 9 a.m. CT/10 a.m. ET and archived at the Web site for approximately three months.
B-ROLL:
Members of the media may also download broadcast quality b-roll video and high-resolution
images and access additional information on the combined company at