New York, May 3 (EFE) .- The merger between United Airlines and Continental announced today creates the largest air transport group in the world and confirms the trend in the industry to consolidate to reduce costs and capacity, increasing competitiveness and cope with the fierce competition and price war.
The two airlines confirmed today their definitive merger agreement, valued at 3,170 million dollars, and that will result if the U.S. regulatory authority gives its green light, the largest airline in the world, with more than 370 destinations in 59 countries and a workforce of around 90,000 people.
In his message to employees, the current president and CEO of United Airlines Corporation (UAL), parent of the airline, Glenn Tilton, increased as a result of the covenant "will be some staff reductions in force general labor among managers. "
Tilton, according to the agreement, will chair the board of the new airline, which will consist of 16 directors, operate under the name of United and will be headquartered in Chicago (Detroit) and its principal operating center in Houston (Texas), but will have nine more.
The new corporation will be called Continental and United's fleet of both airlines will be unified under the blue logo Continental also launched a campaign under the slogan "Let's fly together."
President and CEO of Continental, Jeff Smisek, will hold that same position in the new company and will join the board of directors, said the two airlines through a joint press release.
also noted that the agreement still must be approved by shareholders, apart from the competition authorities in the U.S., shareholders will receive 1.05 Continental titles for each of their titles.
The total price of the merger will be around 3,170 million dollars, and that calculation was made based on the quote as evidence of United had to midday on Friday, $ 21.60, and Continental, which were $ 22.68.
Experts have estimated that the value per share represents a premium of 1.5% compared to the prices at which securities closed last Friday.
The airline said that based on the agreement, United have 55% of the resulting signature and 45% Continental, plus the transaction is completed in the final quarter of this year.
United Future will be almost 8% larger than Delta Air Lines (DAL) and managed about 21% of the seats in the U.S. market, compared with 20% that Delta achieved after the acquisition of Northwest Airlines in 2008.
With the merger between United and Continental, third and fourth airlines in the world by passenger numbers, consolidating the trend in the airline industry to reduce costs and capacity, increasing competitiveness and cope with the fierce competition and price war.
"It is a merger of equals that will create a truly global airline with an unparalleled network to serve around the world," said Tilton, who considered that this operation "creates a company stronger and more efficient in operational terms and financially. "
added that the resulting firm will also be "best positioned to succeed in a global aviation industry very dynamic and competitive."
Smisek, meanwhile, said the merger would give "a significant financial strength will allow investments to further improve products and services to keep roasted benefits ".
The two firms also referred to the impact that the merger will have on its workforce, which together will be around 90,000 employees, telling them that" job security will be strengthened, to be part of an airline financially stronger and more geographically diverse.
The two companies said they believe that the effect of the merger on the workforce "will be minimal," but stated that a reduction will occur through retirement programs and other voluntary for who want their low, responding to concerns expressed by the union sector, they belong to nearly 30,000 employees of both airlines.
also reported that the resulting firm will have combined annual revenue around U.S. $ 29,000 million, with reference to the financial performance of both last year.
United and Continental are in Star Alliance, which also includes Germany's Lufthansa and Air Canada, and which provide consumers with more than 1,000 destinations.
In Brussels, the European Commission said Monday it will consider the implications from the point of view, this merger raises competition for Star Alliance.
Following the announcement of the merger, shares United won the 1.08% to $ 21.83 and Continental, by 0.40% to $ 22.44 per share.
DNA / Aeroblog
The two airlines confirmed today their definitive merger agreement, valued at 3,170 million dollars, and that will result if the U.S. regulatory authority gives its green light, the largest airline in the world, with more than 370 destinations in 59 countries and a workforce of around 90,000 people.
In his message to employees, the current president and CEO of United Airlines Corporation (UAL), parent of the airline, Glenn Tilton, increased as a result of the covenant "will be some staff reductions in force general labor among managers. "
Tilton, according to the agreement, will chair the board of the new airline, which will consist of 16 directors, operate under the name of United and will be headquartered in Chicago (Detroit) and its principal operating center in Houston (Texas), but will have nine more.
The new corporation will be called Continental and United's fleet of both airlines will be unified under the blue logo Continental also launched a campaign under the slogan "Let's fly together."
President and CEO of Continental, Jeff Smisek, will hold that same position in the new company and will join the board of directors, said the two airlines through a joint press release.
also noted that the agreement still must be approved by shareholders, apart from the competition authorities in the U.S., shareholders will receive 1.05 Continental titles for each of their titles.
The total price of the merger will be around 3,170 million dollars, and that calculation was made based on the quote as evidence of United had to midday on Friday, $ 21.60, and Continental, which were $ 22.68.
Experts have estimated that the value per share represents a premium of 1.5% compared to the prices at which securities closed last Friday.
The airline said that based on the agreement, United have 55% of the resulting signature and 45% Continental, plus the transaction is completed in the final quarter of this year.
United Future will be almost 8% larger than Delta Air Lines (DAL) and managed about 21% of the seats in the U.S. market, compared with 20% that Delta achieved after the acquisition of Northwest Airlines in 2008.
With the merger between United and Continental, third and fourth airlines in the world by passenger numbers, consolidating the trend in the airline industry to reduce costs and capacity, increasing competitiveness and cope with the fierce competition and price war.
"It is a merger of equals that will create a truly global airline with an unparalleled network to serve around the world," said Tilton, who considered that this operation "creates a company stronger and more efficient in operational terms and financially. "
added that the resulting firm will also be "best positioned to succeed in a global aviation industry very dynamic and competitive."
Smisek, meanwhile, said the merger would give "a significant financial strength will allow investments to further improve products and services to keep roasted benefits ".
The two firms also referred to the impact that the merger will have on its workforce, which together will be around 90,000 employees, telling them that" job security will be strengthened, to be part of an airline financially stronger and more geographically diverse.
The two companies said they believe that the effect of the merger on the workforce "will be minimal," but stated that a reduction will occur through retirement programs and other voluntary for who want their low, responding to concerns expressed by the union sector, they belong to nearly 30,000 employees of both airlines.
also reported that the resulting firm will have combined annual revenue around U.S. $ 29,000 million, with reference to the financial performance of both last year.
United and Continental are in Star Alliance, which also includes Germany's Lufthansa and Air Canada, and which provide consumers with more than 1,000 destinations.
In Brussels, the European Commission said Monday it will consider the implications from the point of view, this merger raises competition for Star Alliance.
Following the announcement of the merger, shares United won the 1.08% to $ 21.83 and Continental, by 0.40% to $ 22.44 per share.
DNA / Aeroblog
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