Merger Imminent Between United and Continental Airlines

United Airlines and Continental Airlines are merging and will become the world's largest carrier.              

UAL , the parent of United, will pay more than $3 billion dollars in an all stock deal.              

UAL CEO Glenn Tilton:              

[Glenn Tiltion, CEO, UAL]:              

"Continental and United are doing this against the backdrop of an industry landscape that has changed significantly. We are competing across the United States by low-cost carriers who continue to grow."              

Tilton will become the non-executive chairman, while Continental Chief Jeff Smisek will be the CEO of the new holding company. 

UAL had previously been in talks with US Airways group- and that is what prompted this deal they said. 

Smisek says the company will be better able to compete globally, and will better serve its customers. 

The new company will retain the United Airlines name and will be based in Chicago.