UNITED and CONTINENTAL AIRLINES closed their merger deal as scheduled yesterday, with both carriers becoming wholly owned subsidiaries of United Continental Holdings Inc. The Chicago-based, merged company should generate net annual "synergies" of $1 billion to $1.2 billion by 2013, including up to $900 million extra a year from new revenue generated by fleet optimization and expanded service. Shareholders of both Airlines approved the merger on September 17. Now that they have officially closed their merger, the new management team plans to undertake an analysis of the combined carrier's fleet. Previously United had indicated it would make a decision by year-end on replacing its aging Airbus narrowbodies. The carrier also operates 96 Boeing 757s. The carrier declined to specify a timeframe for making a fleet decision. Meanwhile, the carrier said they have a goal to reach joint collective bargaining agreements with all the combined work groups by the time Continental and United receive a single operating certificate from the FAA, which should take about a year.
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