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EU approves UAL's buy of Continental
UAL said the combined company would fly to 370 destinations and have 10 hubs worldwide
Brussels: United Airlines parent UAL won unconditional EU regulatory approval yesterday for its $3.17 billion buy of Continental Airlines that will create the world's largest carrier.
UAL, which unveiled the deal in May, had said the combined company would fly to 370 destinations and have 10 hubs worldwide, helping it to attract more business travellers.
The global crisis has hit the airline industry already under pressure from volatile fuel prices, low-cost competition and overcapacity.
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United And Continental's Merger
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#2
EAC 
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Posted 29 July 2010 - 12:03 PM
US airlines await green light for merger after naming executives
Regulatory approval is expected in August as EU gives its nod
Minneapolis: United Airlines and Continental Airlines on Tuesday named the executives who will run what would be the world's largest airline, on the same day that European antitrust authorities approved the combination.
The moves brought United and Continental a step closer to their goal of closing the deal by the end of this year. The main suspense now is whether the US Justice Department will object on antitrust grounds. The airlines have said they expect approval and have been cooperating in the government's review.
The plan all along has been for Continental CEO Jeff Smisek to run the combined airline, with United CEO Glenn Tilton as chairman. The question has been who their lieutenants would be.
The eight executives named on Tuesday include four from Continental and four from United. It's hard not to conclude though that much of the power will come north from Houston with Smisek.
Continental's chief financial officer, Zane Rowe, 39, would keep that job at the combined airline. Continental labour chief Mike Bonds, 48, will keep his role, too.
Meanwhile, United chief financial officer Kathryn Mikells and president John Tague will both leave after the deal closes. Tilton brought in Tague in 2003 while United was restructuring under bankruptcy protection. Mikells has been with United since 1994, and was named chief financial officer in November 2008.
United's new general counsel Tom Sabatino, 51, is staying in that job.
The chief operations officer will be Pete McDonald, 59, who started as a ramp worker in 1969. His title is chief administrative officer, and he oversees technology, labour, communications, lobbying, investor relations, and customer issues. He knows United's operations well. Besides working on the ramp, he has overseen its operations in various executive roles and built the airline's Denver hub.
The airlines have said the combined company will fly under the United name and will be based in United's hometown of Chicago.
Small effect
In approving the combination on Tuesday, the European Commission said it will have only a small effect on the market share of the two airlines on lucrative North Atlantic routes. The European regulatory body said the combination will not give rise to any specific concerns because their passenger and cargo routes between Europe and North America largely overlap anyway.
US regulatory approval for the merger is expected in August, EU officials said.
Tague and Mikells both sold shares of United parent UAL Corp in recent days, according to a filing late on Monday.
Tague sold shares worth $1.2 million (Dh4 million) on Thursday. Mikells exercised options on Thursday and Friday and sold shares for net proceeds of almost $352,000 according to the company. Neither sale was part of a prearranged trading plan.
Other executives named on Tuesday for the combined airline included:
Regulatory approval is expected in August as EU gives its nod
Minneapolis: United Airlines and Continental Airlines on Tuesday named the executives who will run what would be the world's largest airline, on the same day that European antitrust authorities approved the combination.
The moves brought United and Continental a step closer to their goal of closing the deal by the end of this year. The main suspense now is whether the US Justice Department will object on antitrust grounds. The airlines have said they expect approval and have been cooperating in the government's review.
The plan all along has been for Continental CEO Jeff Smisek to run the combined airline, with United CEO Glenn Tilton as chairman. The question has been who their lieutenants would be.
The eight executives named on Tuesday include four from Continental and four from United. It's hard not to conclude though that much of the power will come north from Houston with Smisek.
Continental's chief financial officer, Zane Rowe, 39, would keep that job at the combined airline. Continental labour chief Mike Bonds, 48, will keep his role, too.
Meanwhile, United chief financial officer Kathryn Mikells and president John Tague will both leave after the deal closes. Tilton brought in Tague in 2003 while United was restructuring under bankruptcy protection. Mikells has been with United since 1994, and was named chief financial officer in November 2008.
United's new general counsel Tom Sabatino, 51, is staying in that job.
The chief operations officer will be Pete McDonald, 59, who started as a ramp worker in 1969. His title is chief administrative officer, and he oversees technology, labour, communications, lobbying, investor relations, and customer issues. He knows United's operations well. Besides working on the ramp, he has overseen its operations in various executive roles and built the airline's Denver hub.
The airlines have said the combined company will fly under the United name and will be based in United's hometown of Chicago.
Small effect
In approving the combination on Tuesday, the European Commission said it will have only a small effect on the market share of the two airlines on lucrative North Atlantic routes. The European regulatory body said the combination will not give rise to any specific concerns because their passenger and cargo routes between Europe and North America largely overlap anyway.
US regulatory approval for the merger is expected in August, EU officials said.
Tague and Mikells both sold shares of United parent UAL Corp in recent days, according to a filing late on Monday.
Tague sold shares worth $1.2 million (Dh4 million) on Thursday. Mikells exercised options on Thursday and Friday and sold shares for net proceeds of almost $352,000 according to the company. Neither sale was part of a prearranged trading plan.
Other executives named on Tuesday for the combined airline included:
- Jeff Foland, 39, who has been at United since 2005, will lead the combined airline's frequent flier programme;
- Nene Foxhall, 58, who has been at Continental since 1995, will oversee communications and lobbying;
- Jim Compton, 54, who has been with Continental since 1995, will be chief marketing officer, and
- The chief information officer will be Keith Halbert, 50, who has been with United since 2008.
#5
TailSpin
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Posted 29 July 2010 - 04:44 PM
BlueViper, on 29 July 2010 - 03:54 PM, said:
Nooman, on 29 July 2010 - 01:03 PM, said:
bad news for Delta & American.
Right. More tough times for the troubled operators.
Why, do you know something I don't? Actually it'll be bad news for the airlines that are not in alliance with the Delta and United mega carriers. Also, not sure if US Airways will survive. If US Air goes it will take Mesa Airlines down with it.
#6
B789
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Posted 30 July 2010 - 01:22 PM
TailSpin, on 29 July 2010 - 04:44 PM, said:
BlueViper, on 29 July 2010 - 03:54 PM, said:
Nooman, on 29 July 2010 - 01:03 PM, said:
bad news for Delta & American.
Right. More tough times for the troubled operators.
Why, do you know something I don't? Actually it'll be bad news for the airlines that are not in alliance with the Delta and United mega carriers. Also, not sure if US Airways will survive. If US Air goes it will take Mesa Airlines down with it.
BTW, EU has approved the United - Continental merger.
IMO, the troubled carriers are troubled because of their unfriendly mean policies. Look at South West, how successful it is. America West bought US Air but did not mend itself. Hence, trouble continues and US Airways is already counting days to its death. They have so many hubs but none of them at a major city and now looking for another some sort of merger. Speculated merger of AA and US will NOT help. It will only dump AA revenues further.
Delta will probably not impacted depending upon new airline keeps United policies or adopts Continental policies and partly because of its domestic hub locations at ATL, JFK and DTW. If United policies are continued, which is most likely the case, Delta has nothing to fear. Merger will only bring some of the loyal Continental customers to Delta. Yes, United will gain from its size and Star alliance but Delta is almost equally big. On the other hand, AA is for sure destined to loose a lot. Older planes with stupid customer service being prime reason.
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