United and Continental Airlines to merge
The new planes will fly under the United Airlines name
US-based United Airlines and Continental Airlines have agreed a deal to merge, creating the world＇s biggest carrier.
The loss-making companies said they expected the deal, worth $3.2bn (£2.1bn), to deliver savings of more than $1bn a year.
The combined group will be named United Airlines.
But new branding will combine the current Continental colours with the United Airlines name.
After the deal was announced shares of both firms rose in morning trading in New York.
United＇s parent UAL Corporation saw its shares rise by 62 cents, or 2.9% to $22.22, while Continental shares were up 63 cents, or 2.8%, to $22.98.
Although United is seen as the dominant partner, the merger was described as "a merger of equals".
Together United and Continental currently fly to 370 destinations worldwide, flying 144 million passengers a year.
Combining the two companies will create the world＇s biggest airline, based on the total number of passenger-miles flown.
Continental＇s boss Jeff Smisek will be chief executive of the new company based in Chicago, while United Airlines＇ Glenn Tilton will serve as the non-executive chairman.
Mr Tilton called the deal "great... for our customers, our employees, our shareholders and our communities".
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