Shareholders of United Airlines’ parent UAL Corp. and Continental Airlines Inc. approved their $3.2 billion stock-swap merger, clearing the way for the creation of the world’s largest carrier.
Ninety-eight percent of shares voted at both carriers were in favor of the merger, spokeswomen for the airlines said. Ballots were cast at separate meetings Friday in Houston, where Continental is based, and in a suburb of United’s home city of Chicago. The companies expect to close the merger by Oct. 1, after getting U.S. government approval last month.
The combined carrier will surpass Delta Air Lines Inc. as the world’s biggest by passenger traffic, and will combine United’s Pacific operations with Continental’s networks in Latin America and across the Atlantic. Airlines in the U.S. and Europe have used mergers to expand networks, boost revenue and reduce costs.
Jim Corridore, a Standard & Poor’s equity analyst in New York, said in a note to investors, “We are positive on the planned merger, which we think creates an extremely strong global route network with opportunities for cost and revenue synergies.”
