United And Continental Merger
Under One Roof United Continental Holdings
October 3, 2010 - United Continental Holdings, Inc., formerly UAL Corporation, announced on Friday that a wholly owned subsidiary has merged with Continental Airlines, Inc., and that Continental Airlines and United Air Lines, Inc. are now wholly owned subsidiaries of United Continental Holdings, Inc., creating a world-class global airline. On Friday, the common stock of United Continental Holdings, Inc. begins trading on the New York Stock Exchange under the symbol UAL.
United Continental Holdings, Inc. also announced the members of its board of directors, effective Oct. 1, 2010. The 16-member board includes six independent directors from each of United and Continental, Glenn Tilton, who will serve as non-executive chairman of the board, and Jeff Smisek, who will serve as president and chief executive officer.
The independent directors are Kirbyjon H. Caldwell, Carolyn Corvi, W. James Farrell, Jane C. Garvey, Walter Isaacson, Henry L. Meyer III, Oscar Munoz, James J. O'Connor, Laurence E. Simmons, David J. Vitale, John H. Walker and Charles A. Yamarone. Additionally, the board has two union directors: Stephen R. Canale and Captain Wendy J. Morse.
"This is a true
merger of equals, bringing together two strong companies and positioning
us to succeed in a dynamic and highly competitive global aviation
industry. This sets us on a path to create the world's leading airline
from a position of strength, with one of the the industry's best cash
positions, industry-leading revenues and a competitive cost structure,"
Tilton said. "Drawing from both companies, we have an excellent board of
directors and a strong management team, and we have the industry's best
people to deliver on the promise of great products and service for our
customers, career opportunities for our people and consistent returns
for our shareholders."
"We are delighted
to announce the successful completion of this merger. With great people,
an unparalleled global network, the best new aircraft order book among
$9 billion in unrestricted cash at closing, United expects the merger
will 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.
Continental and United, operating under United Continental Holdings, Inc., will immediately begin the work to fully integrate the two companies. In the near term, customers can expect to interact with each carrier as they always have. Customers flying on Continental will continue to check in at continental?s website or at Continental kiosks and ticket counters, and to be assisted by Continental employees, and customers flying on United will continue to check in at their website or at United kiosks or ticket counters, and to be assisted by United employees.
continue to earn and redeem frequent-flier miles through the respective
loyalty programs of Continental and United until those programs are
combined. The company expects that travelers will begin to see a more
unified product in the spring of 2011, as the carriers integrate key
customer service and marketing activities to deliver a more seamless
closing is a big first step, and I want to thank my co-workers at
Continental and United for their incredible efforts to get us to this
point," Smisek said. "We have been moving quickly but thoughtfully on
our integration planning, and I'm pleased with the progress we've made.
We have a lot of hard work ahead as we begin to implement our
integration plan, but our co-workers are enthusiastic about the
opportunities this merger will bring to them."
team is the most important asset of the new airline," said Smisek. "We
will be working together to provide our co-workers with the right
culture, tools and incentives to do their jobs well and to make them
proud to work for the new United."
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