1. A Report on Merger & Acquisition of United Airlines
& Continental Airlines
Submitted to
Mr. Soumen Mukherjee
By
Amit Kumar

2. Points to be covered……………
1.Compulsion/Attractiveness of the Deal
2.View on success/Failure of the deal
3. Way Forward

3. A comparative Introduction……………............................
Organization United Airlines Continental Airlines United Continental
Holdings
Founded April,1926 July,1934 May 2010
Headquater Chicago,USA Houston,USA Chicago USA
Revenue(FY 09-10) $ 16.335 $ 12.586 $ 23.229
billions(Annual billions(Annual billions(Annual
Report 2009) Report 2009) Report 2010)
Operating Income $(161)millions- $ (146)millions FY $ 976 millions
FY2009,$(4438)milli 2009,$(314)
ons-FY2008 millions FY2008
Passenger (In 55,083 45,573 100,656
millions)
Presence Pacific Europe,Asia,Canada Africa,Europe,Latin
Region,Europe,Latin ,Mexico,Latin America,Asia,Canad
America America a,Mexico
Flight in a day 3300 3000 5700

4. Route map of Continental Airlines in 2009

5. Route map of United Airlines in 2009

6. Structure of deal & Attractiveness….
1. To effect the merger, Continental shareholders received 1.05 shares of UAL stock for
each Continental share; at the time of closing, it was estimated that United shareholders
owned 55% of the merged entity and Continental shareholders owned 45%.
2. The U.S. Department of Justice approved the $3 billion merger and shareholders of
both the companies approved the merger on September 17, 2010
3. This deal created 2nd Largest Airlines & covered 15.9% of Domestic Market & 12% of
International market.
http://www.transtats.bts.gov/-----Reference
Operational Structure……
Together United and Continental currently fly to 370 destinations worldwide, flying 144
million passengers a year, compare to Delta Airlines, flying 163million passenger a year
to 337 destinations

7. My View on Success/Failure of deal…..
• Both companies are full-service airlines and have faced intense competition
from low-cost operators
• United Airlines' parent company UAL reported a loss of $82m for the first
three months of the year, after reporting a $1.1bn loss for 2009
• Continental reported net losses of $282m last year
• My View-Combining the two companies will create the world's biggest airline,
based on the total number of passenger-miles flown
• Deal deliver savings of more than $1bn a year
• The companies did not cut potential jobs , but said they expected front-line
employees to be "minimally affected by the merger", with staff reductions
coming from retirements and voluntary redundancy

8. Way Forward….
• The Company has taken significant steps towards the operational
integration of United & Continental
• The company has begun to optimize the gauge & frequency of its fleet in
order to meet travel demand & capitalize on its combined global network
efficiently
• Additional revenue generating & cost saving measures

9. Thank You!