Question

UAL and Continental Airlines merged. What approvals needed to occur? Why did the merger occur? Was this a vertical merger? How successful is the merged company in 2019? What is said on line from customers about the airline?

Answer 1

United Airlines Holdings, Inc. (formerly UAL Corporation (1968-2010) and United Continental Holdings (2010-2019)) is a publicly traded airline holding company headquartered in the Willis Tower in Chicago. UAH owns and operates United Airlines, Inc. On June 27, 2019, the name of the parent company was changed from United Continental Holdings to United Airlines Holdings.

The company is the successor of UAL Corporation, which agreed to change its name to United Continental Holdings in May 2010, when a merger agreement was reached between United and Continental Airlines. Its stock trades under the UAL symbol. To effect the merger, Continental shareholders received 1.05 shares of UAL stock for each Continental share, effectively meaning Continental was acquired by UAL Corporation; at the time of closing, it was estimated that United shareholders owned 55% of the merged entity and Continental shareholders owned 45%. The company or its subsidiary airlines also have several other subsidiaries. Once completely combined, United became the world's largest airline, as measured by revenue passenger miles. United is a founding member of the Star Alliance

Early in February 2008, UAL Corporation and Continental Airlines began advanced stages of merger negotiations and were expected to announce their decision in the immediate aftermath of a definitive merger agreement between rival Delta Air Lines and Northwest Airlines. The timing of the events was notable because Northwest's golden shares in Continental (that gave Northwest veto authority against any merger involving Continental) could be redeemed, freeing Continental to pursue a marriage with United. On April 27, 2008, Continental broke off merger negotiations with United and stated it was going to stand alone Despite ending merger talks, Continental announced that it will join United in the Star Alliance.

United and US Airways were in advanced merger talks in late April 2008, following the announcement that Continental had broken off talks with United. In June 2008, CEOs of both United Airlines and Continental Airlines signed an alliance pact presaging their eventual merger. The alliance is an agreement to link international networks and share technology and passenger perks. This agreement is basically a "virtual merger" that includes many of the benefits of a merger without the actual costs and restructuring involved. The alliance took effect about a year after Delta Air Lines and Northwest Airlines completed their merger, as that released Continental from the SkyTeam contract and allowed for the required nine-month notice. Additionally, Continental joined Star Alliance, as Delta and Northwest merged

United Airlines was reported to be in serious merger discussion with US Airways in early April 2010. A New York Times report indicated that a deal was close. Union consent was cited as a major hurdle for negotiators to clear. On April 22, 2010, United announced that it would not pursue a merger with US Airways

The Board of Directors at Continental and United Airlines approved a stock-swap deal that would combine them into the world's largest airline on Sunday, May 2, 2010. The airlines publicly announced the deal the next day This would re-unite Walter Varney's airlines, which offspring includes Continental and United.

Both airlines have taken losses in the recession and expect the merger to generate savings of more than $1 billion a year Combined, they fly to some 370 destinations in 59 countries from their ten hubs, and carry 144 million passengers a year. Combined revenues will be about $29 billion

In July, the merger of the two airlines was approved by the European Union

On August 27, 2010, the U.S. Department of Justice approved the $3 billion mergerand shareholders of both the companies approved the merger on September 17, 2010 On October 1, 2010, UAL Corporation (the parent company of United Airlines) completed its acquisition of Continental Airlines and changed its name to United Continental Holdings, Inc. Although the two airlines remained separated until the operational integration was completed, as of this day both airlines are corporately controlled by the same leadership. Both carriers achieved a single operating certificate from the FAA on November 30, 2011 which allowed both airlines to operate under the name "United

In the early years of the troubled 2010 merger, employee rancor led to numerous cases in which flight attendants told passengers in cabin announcements that they had a Continental or United crew. The airline also struggled to merge pilot seniority lists, issue a single uniform for some employees and achieve single labor contracts for several merged work groups. The airline dropped Continental’s brand from its planes after the combination, but the moniker lived on in United’s holding company. Following the tie-up, much of the carrier’s senior management hailed from the former Continental.