United and Continental to Merge

United and Continental have agreed to join forces in a merger that will create the world's largest airline. The merger, which is subject to government approval, could be finalized by the end of the year.

The new airline will take the United name and will be based in Chicago, where United is headquartered. But Continental CEO Jeff Smisek will be the chief executive of the combined airline and the Board will include an equal number of United and Continental directors.

For the time being, it will be business as usual at both carriers and there is unlikely to be any effect on passengers or flight schedules until the merger is complete.

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