The two American carriers, United Airlines and Continental Airlines are reported to have agreed to a $3 billion deal regarding the merger of the two airlines. This deal which will be announced on Monday will create a coast to coast presence which will be the biggest in the market. The major presence will be felt in major hubs like New York, Chicago and Los Angeles also with extended network places like Asia, Europe and also Latin America.
The deal was completed rapidly in three weeks and was done so quickly to fight off the low cost carriers back home in the US and also to take on major competition offered by the foreign carriers. United will be buying Continental Airlines and the combined company will be retaining United’s name and the headquarters will be present in Chicago. If the deal goes well, then United will replace Delta as the largest carrier in the US.