United Airlines and Continental Airlines have agreed a merger which will create the world's biggest airline. It will be called United Airlines but the new branding will be a combination of both airline's current colours.
Both companies are currently making losses but expect to make savings of more than $1 billion a year following the $3.2 billion deal. The merger has been described as a "merger of equals" although United Airlines will be seen as the dominant partner. Between them, they fly to 370 destinations and fly 144 million passengers a year. They currently employ a total of 86,000 people and experts believe redundancies will be inevitable as the new company aim to cut costs. Shared IT and maximising the use of the fleet are also expected to deliver cost-savings.
The merger has to be agreed by shareholders and competition regulators and unions will also need to agree to the deal.
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