Continental and United Resume Talks to Merge

[D Chan]

looks utterly disgusting - cheap and tacky... or a cut and paste job
United without their tulip is just not united at all

The United States have just lost what is a good carrier in CO

[Lee G]

Oh well - at least it will be something new to photograph twice daily in Sydney

[Mike Scott]

Below is the message we all got from Mr. Tilton today. I will also post the various other internal notices that we get so that you are all "up to date" with the internal happenings associated with the merger. Looks like our aircrft painting team is going to be busy yet again changing colors/logos etc....and also you folks with your cameras etc as our newly painted aircraft start making their first appearances in Oz probably early next year. Lots of work still to be done before this merger actually happens...but this is a very good day for those of us that have dealt with a lot of sh-t from this company for many many years.

Dear fellow employee,

In recent years, the results of our work together have been evident in our significantly improved and consistent performance and our recognition in the marketplace. Our performance puts us in the position today to announce a merger of equals with Continental Airlines and on track to be the world’s leading airline, which is exactly where our company should be.

Our new airline will be called United Airlines, and will use the Continental white livery with the globe.

With our announcement today, we are bringing together two of the world’s premier airlines to form a platform that will provide greater stability and opportunity for our people, more choices for our customers and a better return for our shareholders.

Our company will be 55 percent owned by United shareholders and 45 percent owned by Continental shareholders. Our headquarters will be in Chicago in our building at 77 W. Wacker, and our operations center will be located in the Willis Tower.

By merging with Continental, we will have the world’s best network, and will be well positioned to compete with global carriers. We will continue to serve every destination our two airlines fly to today. As such, we expect minimal impact to our frontline employees with any reductions coming principally through retirement, attrition and voluntary programs.

The combined company’s management team is expected to include an equitable and balanced selection of executives from each company with the intention that each company will be contributing roughly equal numbers. This will result in some reductions in the salaried and management work force for both Continental and United.

I will serve as non-executive chairman of the Board of Directors and Jeff Smisek, Continental chairman, president and chief executive officer, will be chief executive officer and a board member of United. The board will also comprise six independent directors from each carrier and two labor directors.

Throughout the merger approval process, which is likely to last through the fourth quarter of this year, we will develop an integration plan that will involve a dedicated team of employees from both airlines. Jeff and I will lead that team.

That integration planning work will be separate from that which the vast majority of us will be focused on: safely running a great airline and continuing the momentum we have under way to improve our performance.

Knowing and respecting our Continental colleagues as we do, I am confident that we will work together to create a stronger airline, better positioned to succeed in the competitive global aviation industry.

Today is a great day for our company, and we are very proud of this latest step in our transforming journey. We have always been proud to call Chicago home, and we thank our customers, the city, and Mayor Daley for standing by us and encouraging us to move forward. The work all of you do has enabled us to reach this point, and I look forward to working with you as we create opportunity for our people, our customers, our shareholders and the communities we serve, and make Chicago’s hometown airline even better.

For the most up-to-date information on the merger, I encourage you to visit the SkyNet site and www.unitedcontinentalmerger.com.


Glenn

[Mike Scott]

Here is the internal web page posting:

Today we are announcing a merger agreement with Continental Airlines that will create the world's leading airline.

The new company's corporate and operational headquarters will be in Chicago, and it will maintain significant operations in Houston, which will be the combined company's largest hub. The holding company for the new entity will be named United Continental Holdings, Inc. and the name of the airline will be United Airlines. The marketing brand will be a combination of the brands of both companies. Aircraft will have the Continental livery, logo and colors with the United name, and the announcement campaign slogan will be "Let's Fly Together."

Employees will benefit from improved long-term career opportunities and enhanced job stability by being part of a financially stronger and more geographically diverse carrier that is better able to compete successfully in the global marketplace.

We expect minimal impact to our frontline employees with any reductions coming principally through retirement, attrition and voluntary programs. We expect this will result in some reductions in the salaried and management work force for both Continental and United.

Glenn will serve as non-executive chairman of the Board of Directors and Jeff Smisek, Continental's chairman, president and CEO, will be CEO and a board member of United. The board will also comprise six independent directors from each carrier and two labor directors.

Our combination with Continental brings together the two most complementary networks of any U.S. carriers, with minimal domestic and no international route overlaps. We will offer enhanced service to Asia, Europe, Latin America, Africa and the Middle East from well-placed hubs on the East Coast, West Coast, and Southern and Midwestern regions of the United States. We will have 10 hubs, including hubs in the four largest cities in the United States, as well as Narita and Guam, and will provide enhanced service to underserved small- and medium-sized communities.

United shareholders would own approximately 55 percent of the equity of the combined company and Continental shareholders would own approximately 45 percent, including in-the-money convertible securities on an as-converted basis.

Together, we will have the most modern, fuel-efficient fleet (adjusted for cabin mix) and the best new aircraft order book among major U.S. network carriers. We will also have the financial strength to enhance our customers' travel experience and will be able to invest in globally competitive products, upgrade technology, refurbish and replace older aircraft, and implement the best-in-class practices of both airlines.

The merger will create the industry's leading frequent flyer program, offering vast opportunities for customers to earn and redeem miles, including on Star Alliance partners.

The merger has been approved unanimously by the boards of both companies and is conditioned on approval by the shareholders of both companies, receipt of regulatory clearance, and certain other closing conditions. We expect to complete the transaction in the fourth quarter of 2010.

Additional information, including frequently asked questions, is available on SkyNet, along with a link to www.unitedcontinentalmerger.com, a dedicated Web site for employees, customers and other stakeholders. "Let's Fly Together" will be updated regularly with new developments.

[Mike Scott]

The most important piece of this whole merger is how our unions will be involved...with out that agreement there will be no merger. That said, we already have a memorandum of understanding in place between our two pilot groups and Continental has recently rejoined ALPA which paves the way for a orderly and harmonious transition into what will be probably the largest pilot group in the country...possibly the world. I'm posting this morning's announcement from our union leadership team since it directly relates to the working relationship that already exists and the spirit of the negotiations that will take place in the near future.

May 3, 2010

“With the announcement today of an intended merger between United Airlines and Continental Airlines, it is important to remember that history has demonstrated that the integration of two airlines is always a difficult challenge. The support of the pilots is pivotal in determining whether a merger is successful or not, as will be the case with this merger of Continental and United. While there is potential for this transaction to create a truly great airline, there are also risks involved. The entity being created must be stronger and more viable than the independent entities that are being merged. The futures of our pilots must also be more secure going forward -- both in our careers and in retirement. We have sacrificed too much through years of concessions, furloughs, pension freezes and terminations to accept unwarranted risk, and any risk requires reward.

“We look for a commitment by the management of the new United Airlines to work with pilot leadership to minimize economic risk and maximize our career security by promptly and fairly negotiating a new, joint pilot contract. The announced merger is expected to create value for shareholders, executives and the traveling public. As critical stakeholders in the merged airline, the pilots of both United and Continental fully expect to share in that value, in both the short and long terms.

“We know that by working together we can build our combined operation into an entity that is respected worldwide for its technical expertise in safely transporting customers to their destinations. We are ready to cultivate a working relationship with a new management team and develop a rapport built on mutual respect and an understanding of our importance to the success of the airline. With that mutual respect and understanding comes an opportunity to produce an enterprise that will enjoy world class stature; and, at the same time promote and protect stable careers and rewarding futures for the pilots we represent.

“The pilots who fly for Continental and United are prepared to stand shoulder to shoulder to support the creation of a viable, profitable merged company. The importance of a fair and equitable seniority integration between the two pilot groups and a businesslike commitment to achieving commensurate value for pilots through the prompt negotiation, among other things, of a new joint collective bargaining agreement is recognized by all parties as central to a successful airline merger. We are also prepared to stand shoulder to shoulder in opposition of this transaction should these ideals and concepts not immediately be fostered by the new management team. Both the United and Continental pilot groups understand what can be achieved by working together; and, in concert with the new management team, under these conditions welcome the opportunities and expected rewards of building a winning combination.”

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[Sarah C]

That livery isn't very exciting - the CO livery looks nice but surely they could have come up with something better than that.

[Dan Collins]

Always been a fan of the Continental livery, so kinda glad they're keeping it. I know it's a bit cheap to just whack 'United' on there but it'll keep costs down - I guess?

Be good to see them here in Sydney. Speculation on other forums is what will happen with the recent Airbus orders from United (since Continental is a Boeing strong fleet).

Dan

[Justin L]

I for one like the new livery. It shows that the deal is a true merger in my opinion. By keeping the Continental livery and replacing "Continental" with "United" in Continental's current font, both airlines to some extent retain some identity.

This contrasts with the recent Delta/Northwest merger, where all branding switched over to Delta entirely.

[Joseph Saragozza.]

Originally Posted by D Chan

looks utterly disgusting - cheap and tacky... or a cut and paste job
United without their tulip is just not united at all

The United States have just lost what is a good carrier in CO

110% agree.

with united having 55 percent ownership as to continental having 45 you would think united would have more than just their name on the plane.

[Ash W]

It's a merger not a take over, so there has to be give and take even if one partner has a greater share.