news about cheap fares and airlines from travel search engine Trabber

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

A United Airlines pilot was arrested at Heathrow airport following a failed breathalyser test as he was trying to board a plane carrying 135 passengers bound for Chicago. The 51-year-old man was scheduled to take charge of the transatlantic flight.

According to a Metropolitan Police official, the pilot was apprehended at noon on Monday and subsequently released on bail.

Because of the cancelled fight, the 124 passengers and 11 crew members had to be transferred to another aircraft.

source: self-catering-breaks.com

United Airlines’ stock fell more than 75 percent Monday morning after a link to a nearly six-year-old Chicago Tribune news report was circulated through Bloomberg News Service.

United stock, which had closed Friday at $12.30 a share, hit a low of $3 a share before the confusion was cleared up. The stock closed Monday at $10.92.

In a statement Monday morning, United said it is launching an investigation. United exited bankruptcy in February 2006.

source: Sun Sentinel

In a joint letter written to Continental Airlines employees, company chairman Larry Kellner and president Jeff Smisek say that a merger with United Airlines or any other air carrier will not take place.

More than 45,000 Continental employees received the letter by e-mail Sunday following a meeting with the Continental Board of Directors. The board unanimously supported a management recommendation that the company not pursue a merger with another airline.

The two executives say that Continental still plans to consider potential alliances and membership in SkyTeam, but alternatives will also be considered in place of SkyTeam.

source: My Fox

Brazil’s TAM Linhas Aereas and United Airlines, a founding member of the Star Alliance, signed Friday, May 18, a memorandum of understanding to develop an agreement that enables the airlines to offer code-share flights with each other and expands international destinations and frequent flyer opportunities for customers of both carriers.

The agreement will result in more options for customers traveling between Brazil and the United States and includes the implementation of codeshare on TAM and United flights, giving customers of United’s Mileage Plus and TAM’s Fidelidade programs the opportunity to earn and redeem miles to destinations never-before served.

source: brazzilmag.com

United Airlines won tentative approval Tuesday to operate the first nonstop daily flight between Washington and Beijing, a 14-hour trip that links the countries’ capitals as their economies become more intertwined.The Department of Transportation’s final OK would give UAL Corp.’s United a route coveted by executives and government officials and potentially worth $200 million a year.

Washington-based fliers who make regular trips to Beijing applauded the news.

source: Daily Southtown

United Airlines said on Friday it raised round-trip fares by $6 and one-way tickets by $3 on some routes where it faces low-cost competition.

A spokeswoman for the No. 2 U.S. airline, said the carrier increased the prices on Thursday night to offset the higher cost of fuel.

U.S. airlines have implemented several fare hikes this year to combat soaring fuel prices.

source: Washington Post