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United and Continental merge into the biggest airline in the world


On October 1 United and Continental closed the deal, that will se both companies merge into one huge airline. Sources say that the new company`s name will be United Airlines, but with Continental`s colors and globe logo on the tail. The main goal for the new carrier is to attract business customers who want to travel overseas at a reasonable price. The full process of combining both airlines will be completed in a year or so. Till then, customers will continue to check in tickets from Continental`s and United`s separate offices, websites and airport counters.

The merging of airlines of such scale raises a question about future ticket prices. With the deal done, the U.S. will have three dominant airlines – United, Delta and American. This fact is concerning for some specialists and they predict that this deal will lead to higher fares. United and Continental disagree with that, claiming that low-cost domestic flyers like Southwest Airlines, will keep the prices low. Both airlines said that in the beginning of Spring 2011, customers will see a more unified product.

Before 1 October, Delta bore the crown of the world`s largest airline. That became reality thanks to the merging of Delta and Northwest. Thanks to the success of that combination, United and Continental decided to pair up. The new airline will be based, at United`s headquarters in Chicago.