UAL to buy Continental Airlines Inc

The name of the holding company would be United Continental Holdings Inc and the two airlines will merge in an all-stock deal to form an airline that carries the United Airlines brand. The merged airline will be based in Chicago. Continental Chief Executive Jeff Smisek will run the combined airline with over $29 billion in annual revenue. UAL CEO Glenn Tilton will be non-executive chairman.

If the deal receives government approval, it would generate $1-$1.2 billion in revenue and cost benefits for the combined company by 2013, the airlines said. The companies expect to complete the transaction in the fourth quarter of 2010.