Continental and United Agree to Mega Merger

Star Alliance members, Continental and United Airlines have agreed a new "merger of equals", which, subject to regulatory approval, will help in their cost saving efforts and create the world's largest carrier, which would connect passengers to 370 destinations.

According to an official statement by Continental Airlines, the combination of United and Continental brings together the two most complementary networks of any U.S. carriers, with minimal domestic and no international route overlaps. The combined company will have 10 hubs, including hubs in the four largest cities in the United States, and will provide enhanced service to underserved small- and medium-sized communities.

The holding company will be named United Continental Holdings, Inc. and the merged airline will operate under the United Airlines name, but with Continental's logo and livery.