Continental Airlines and United UAL have entered into a deal that is set to emerge as the largest Carrier group in the world. The United Continental Holdings, the name for the new entity is formed fro the $3.1 billion merger and the Symbol would be UAL.Both the companies have already strong Global Network and with the merger have unparalleled global network, the best new aircraft order book among U.S. network carriers and can afford to offer superior products and services.
The United Holding will have approximately $9 billion in unrestricted cash at closing and the merger is expected to deliver $1.0 billion to $1.2 billion in net annual synergies by 2013, including between $800 million and $900 million of incremental annual revenue, from expanded customer options resulting from the greater scope and scale of the network, fleet optimization and expanded service enabled by the broader network of the combined carrier.
On a pro-forma basis, the combined company would have annual revenues of $31.4 billion, based on results for the 12 months ending June 30,2010.The impact of The merger will on other airlines such as Delta airlines is yet to be seen particularly when share of Delta airlines in domestic flights is reduce in this preceding quarter.
Tags:United Airlines, Continental Airlines
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