Jeehan Fernandez – AHN News Writer
Chicago, IL, United States (AHN) – Stockholders of United Airlines and Continental Airlines both approved Friday the merger of two leading carriers which is expected to be finalized on Oct. 1.
UAL Corp., the parent company whose primary subsidiary is United Airlines, said that more than 98 percent of votes cast and 84 percent of shares outstanding were voted by stockholders in favor of the transaction.
More than 98 percent of votes cast and 75 percent of shares outstanding were also voted by Continental stockholders in favor of the same.
“This vote is a significant step toward closing our merger with Continental, creating the world’s leading airline and the industry’s best network for our customers,” Glenn Tilton, United chairman and CEO said in a statement.
He added the merger will also create “a strong company that provides career opportunity for our people and an airline that can deliver return for our shareholders.”
“There is much work ahead as we bring these two companies together, pulling the best from both of our companies and building on the work we have each done to strengthen our airlines,” Tilton said.
Jeff Smisek, Continental’s chairman, president and CEO said that “in approving the transaction, our stockholders recognized the value of bringing together (the two companies) to create a platform for increased profitability and sustainable long-term value.”
United and Continental announced an all-stock merger of equals on May 3. The companies have received clearance on proposed merger from the United States Department of Justice and European Commission.
United hires 46,000 employees and operates some 3,300 flights a day to more than 230 U.S. domestic and international destinations from its hubs in Los Angeles, San Francisco, Denver, Chicago and Washington, D.C. It has key global air rights in the Asia-Pacific region, Europe and Latin America.
United ranked first in on-time performance for domestic scheduled flights for 2009 among America’s five largest global carriers as measured by Department of Transportation and published in Air Travel Consumer Report for 2009.
Continental has 40,000 employees and operations of more than 2,700 daily departures throughout Americas, Europe and Asia, serving 132 domestic and 137 international destinations. It has hubs serving New York, Houston, Cleveland and Guam, and together with its regional partners, carries some 63 million passengers annually.
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