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United Airlines and Continental Airlines will merge in an all-stock deal worth over $3 billion that will create the world’s largest carrier with annual revenues of nearly $29 billion.

The two American carriers have entered into a definitive merger agreement, which is expected to close in the fourth quarter of this year. The merged entity will be known under the brand name of United Airlines and will be based in Chicago, the headquarters of United.

Continental is based in Boston, which will cease to exist post-merger. “The all-stock merger brings together two of the world’s premier airlines, creating a combined company well positioned to succeed in an increasingly competitive global and domestic aviation industry,” both companies said in a statement.

source: Rediff business

Continental Airlines Inc. would make the best merger partner for United Airlines, creating the world’s largest carrier, an analyst said Friday.

Together, Houston-based Continental and UAL Corp.’s United would surpass Delta Air Lines Inc. for the top spot in global passenger traffic.

source: thenewstribune.com

Continental Airlines, the last U.S. carrier serving free meals in the coach cabin, will start charging for food for economy-class passengers on most domestic and Canadian flights as well as certain Latin American routes.

Complimentary meals will still be offered to passengers on economy fares on all intercontinental trips, certain other international routes and domestic flights longer than six hours, Houston-based Continental said today in a statement.

Now, with shorter flights and pressure from low-fare rivals such as Southwest Airlines Co., Continental and the rest of the large U.S. airlines are turning to fees including bag-check charges to raise revenue from sources other than tickets.

source: Business Week

US airline Continental has denied responsibility for a deadly Concorde crash that spelt the end of supersonic travel as its mechanics went on trial in France with French engineers.

Judge Dominique Andreassier read out the charges against the US airline Continental and two of its technical staff who are accused of the manslaughter of 109 people on the plane — most of them German tourists — and four hotel workers on the ground.

The court will decide whether to side with investigators and technical experts who say the crash was caused by a strip of metal that fell off a Continental DC-10 that took off shortly before the Concorde on July 25, 2000.

source: themovechannel.com

Continental Airlines has joined rival Delta in boosting the price for checking bags on flights within the USA and to Puerto Rico, Canada and the U.S. Virgin Islands.

Delta began charging $8 more for the first checked bag and $7 more for a second on Jan. 5. Continental did the same thing beginning with tickets sold Jan. 16. So far, no other big U.S. airline has followed suit.

Continental and Delta now charge $25 for the first checked bag and $35 for the second if the bags are checked at the airport. The fee is slightly lower for bags checked in online.

source: poughkeepsiejournal.com

UK-based airline bmi has signed a new codeshare agreement with Continental Airlines. The new agreement is expected to provide bmi customers with access to a wider range of destinations in the US in a single booking.

The deal will reportedly allow bmi to offer fares to Newark Liberty International and George Bush Intercontinental from London Heathrow, Manchester, Birmingham International, Glasgow, Edinburgh and Brussels and also improve connections between US and the bmi network.

source: tradingmarkets.com

Continental Airlines said on Monday it expects to join the Star Alliance on Oct. 27, allowing it to cooperate on scheduling and prices with global carriers including United.

The Star Alliance was created in 1997 with more than 20 member airlines offering a combined 17,000 daily departures to 160 countries.

Continental said members of its frequent-flier program, OnePass, will not need to make changes to their accounts and their mileage balances will not be affected during the switch.

source: Reuters

A Continental Express flight from Newark to Buffalo crashed into a house about five miles from Buffalo Niagara International Airport on Thursday night, killing 49 people.

The plane carried 44 passengers and a crew of 4, according to the Federal Aviation Administration. The Erie County executive, Chris Collins, later said at a news conference that 49 people, including one on the ground, were killed.

source: iht.com

Continental Airlines Inc. said Tuesday it will discontinue its flights to London/Gatwick Airport from the New York area and Houston, and will add a third daily flight from its New York Hub at Newark Liberty International Airport to London’s Heathrow Airport on Oct. 25.

The launch of the Heathrow flight is subject to government and airport approval.

The move is an effort to satisfy customers’ preference for Heathrow over Gatwick and to face growing competition at the airport, the carrier said.

source: BusinessWeek

Continental Airlines said it is cutting 3,000 jobs and reducing capacity by 11 percent, citing record fuel costs that have pushed the industry into its worst crisis since 2001.

Continental will begin pulling back on flights in September, when departures on its mainline operations will drop about 16 percent below September 2007 levels. Fourth-quarter capacity will fall 11 percent. The company said it plans to offer details on flight and destination reductions and eliminations by the end of next week.

source: washingtonpost.com