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United Continental Holdings

United Continental Holdings, Inc. (formerly UAL Corporation) is a publicly traded airline holding company headquartered in the Willis Tower in Chicago.[8] UCH owns and operates United Airlines, Inc. The company is the successor of UAL Corporation, which agreed to change its name to United Continental Holdings in May 2010, when a merger agreement was reached between United and Continental Airlines. Its stock trades under the UAL symbol. To effect the merger, Continental shareholders received 1.05 shares of UAL stock for each Continental share, effectively meaning Continental was acquired by UAL Corporation; at the time of closing, it was estimated that United shareholders owned 55% of the merged entity and Continental shareholders owned 45%.[9] The company or its subsidiary airlines also have several other subsidiaries. Once completely combined, United became the world's largest airline, as measured by revenue passenger miles. United is a founding member of the Star Alliance.[10]

United Continental Holdings, Inc.
Formerly
UAL Corporation
Public company
Traded asNYSEUAL
DJTA Component
S&P 500 Component
IndustryAviation
FoundedOctober 1, 2010 (2010-10-01)
Chicago, Illinois
HeadquartersWillis Tower, ,
Area served
Worldwide
Key people
ServicesAirline services
RevenueDecrease US$ 36.556 billion[5] (2016)
Decrease US$ 4.338 billion[5] (2016)
Decrease US$ 2.263 billion[5] (2016)
Total assetsDecrease US$ 40.140 billion[5] (2016)
Total equityDecrease US$ 8.659 billion[5] (2016)
Number of employees
88,000[6] (2016)
SubsidiariesUnited Airlines
United Express operated by:
Websitewww.unitedcontinentalholdings.com
Footnotes / references
[7]

UCH has major operations at Chicago–O'Hare, Denver, Guam, Houston–Intercontinental, Los Angeles, Newark (New Jersey), San Francisco, and Washington–Dulles. Additionally, UCH's United is the largest U.S. carrier to the People’s Republic of China and maintains a large operation throughout Asia.[10]

UCH uses Continental's operating certificate and United's repair station certificate, having been approved by the FAA on November 30, 2011.[11][12]

Contents

Major subsidiariesEdit

 
United's global headquarters occupy 16 floors of Willis Tower in Chicago

The following is the list of current subsidiaries of United Continental Holdings, Inc.[13][14]

  • United Airlines, Inc. (formerly Continental Airlines, Inc.[15])
    • Air Micronesia, Inc.
    • CAL Cargo, S.A. de C.V.
    • CALFINCO Inc.
    • Century Casualty Company
    • Continental Airlines de Mexico, S.A.
    • Continental Airlines Domain Name Limited
    • Continental Airlines Finance Trust II
    • Continental Airlines, Inc. Supplemental Retirement Plan for Pilots Trust Agreement
    • Continental Airlines Purchasing Holdings LLC
      • Continental Airlines Purchasing Services LLC
    • Continental Express, Inc.
    • Presidents Club of Guam, Inc.
  • Four Star Insurance Company, Ltd.
  • UAL Benefits Management, Inc.
  • United Airlines, Inc. (the original United Airlines)
    • Covia LLC
      • Mileage Plus Holdings, LLC
      • MPH I, Inc.
      • Mileage Plus Marketing, Inc.
      • Mileage Plus, Inc.
    • United Aviation Fuels Corporation
    • United Cogen, Inc.
    • United Vacations, Inc.

DevelopmentEdit

Early in February 2008, UAL Corporation and Continental Airlines began advanced stages of merger negotiations and were expected to announce their decision in the immediate aftermath of a definitive merger agreement between rival Delta Air Lines and Northwest Airlines.[16] The timing of the events was notable because Northwest's golden shares in Continental (that gave Northwest veto authority against any merger involving Continental) could be redeemed, freeing Continental to pursue a marriage with United. On April 27, 2008, Continental broke off merger negotiations with United and stated it was going to stand alone.[17] Despite ending merger talks, Continental announced that it will join United in the Star Alliance.[18]

United and US Airways were in advanced merger talks in late April 2008, following the announcement that Continental had broken off talks with United.[19] In June 2008, CEOs of both United Airlines and Continental Airlines signed an alliance pact presaging their eventual merger. The alliance is an agreement to link international networks and share technology and passenger perks. This agreement is basically a "virtual merger" that includes many of the benefits of a merger without the actual costs and restructuring involved. The alliance took effect about a year after Delta Air Lines and Northwest Airlines completed their merger, as that released Continental from the SkyTeam contract and allowed for the required nine-month notice. Additionally, Continental joined Star Alliance, as Delta and Northwest merged.[20]

United Airlines was reported to be in serious merger discussion with US Airways in early April 2010. A New York Times report indicated that a deal was close. Union consent was cited as a major hurdle for negotiators to clear.[21] On April 22, 2010, United announced that it would not pursue a merger with US Airways.[22]

The Board of Directors at Continental and United Airlines approved a stock-swap deal that would combine them into the world's largest airline on Sunday, May 2, 2010. The airlines publicly announced the deal the next day.[23] This would re-unite Walter Varney's airlines, which offspring includes Continental and United.[24]

Both airlines have taken losses in the recession and expect the merger to generate savings of more than $1 billion a year.[25] Combined, they fly to some 370 destinations in 59 countries from their ten hubs,[26] and carry 144 million passengers a year.[25] Combined revenues will be about $29 billion.[27]

In July, the merger of the two airlines was approved by the European Union.[28]

On August 27, 2010, the U.S. Department of Justice approved the $3 billion merger[29] and shareholders of both the companies approved the merger on September 17, 2010.[30][31] On October 1, 2010, UAL Corporation (the parent company of United Airlines) completed its acquisition of Continental Airlines and changed its name to United Continental Holdings, Inc. Although the two airlines remained separated until the operational integration was completed, as of this day both airlines are corporately controlled by the same leadership. Both carriers achieved a single operating certificate from the FAA on November 30, 2011 which allowed both airlines to operate under the name "United".[32]

FinancesEdit

For the fiscal year 2017, United Continental Holdings reported earnings of US$2.131 billion, with an annual revenue of US$37.736 billion, an increase of 3.2% over the previous fiscal cycle. United Continental's shares traded at over $69 per share, and its market capitalization was valued at over US$23.1 billion in October 2018.[33] The company ranked No. 81 in the 2018 Fortune 500 list of the largest United States corporations by total revenue.[34]

Year Revenue
in mil. USD$
Net income
in mil. USD$
Total Assets
in mil. USD$
Price per Share
in USD$
Employees
2011 37,110 837 37,988 21.61
2012 37,152 −723 37,628 21.20
2013 38,279 571 36,812 31.65 87,000
2014 38,901 1,132 36,595 47.51 84,000
2015 37,864 7,340 40,861 59.86 84,000
2016 36,556 2,263 40,140 53.02 88,000
2017 37,736 2,131 42,326 69.17 89,800

BrandingEdit

When United Airlines and Continental Airlines announced their merger in May 2010 they introduced their new corporate branding. It featured the words "United Airlines" in the then-current Continental typeface, and Continental's globe-like logo. United updated their branding once again in August 2010, replacing the words "United Airlines" with the single word UNITED and changing the font to United's traditional upper-case sans-serif font.[35] United's new CEO Jeff Smisek, who previously served as Continental's chairman, helped design the new font, integrating it with the existing Lippincott-designed Continental graphics. He has noted that he has received over 15,000 emails with suggestions for a new livery.[36]

The first United 747 featuring the new livery was painted in February 2011. Re-painting and branding is said to be "accelerated" beginning mid-2011.[37]

On March 1, 2011, United unveiled an "interim" marketing campaign replacing the previous "It's Time to Fly" campaign, which included fingerpaint ads and television spots created by Fallon. On the same date, United removed the iconic 38-year-old Saul Bass-designed "Tulip" logo from its website and all new advertisements will feature the former Continental globe logo. This new campaign was used until 2012, when United reconditioned a former slogan, "Fly the Friendly Skies."[38]

FleetEdit

United Airlines operates more than 750 mainline aircraft.[citation needed]

HubsEdit

United Airlines and United Express operate more than 4,500 flights a day to 339 destinations; 140 million customers were carried on 1.5 million flights in 2015.[39]

United Airlines hubs[40]
Airport Area served Type/region Airline before merger
  Denver International Airport   Denver, Colorado Western hub United
  George Bush Intercontinental Airport   Houston, Texas Second largest hub, primary gateway to Latin America Continental
  Los Angeles International Airport   Los Angeles, California Secondary West Coast hub United
  Newark Liberty International Airport   Newark, New Jersey, New York metropolitan area Primary East Coast hub, primary gateway to Europe Continental
  O'Hare International Airport   Chicago, Illinois Largest hub, primary Midwest hub and headquarters for the new airline United
  San Francisco International Airport   San Francisco, California, San Francisco Bay Area Primary West Coast hub, primary transpacific hub United
  Washington Dulles International Airport   Northern Virginia
  Washington, D.C.
Secondary East Coast hub United
  Antonio B. Won Pat International Airport   Guam Primary Pacific hub Continental

See alsoEdit

ReferencesEdit

  1. ^ "United Airlines Names Oscar Muñoz Chief Executive Officer". September 8, 2015. Archived from the original on October 16, 2015. Retrieved September 8, 2015.
  2. ^ "United Poaches American Airlines President Scott Kirby". August 30, 2016. Retrieved August 30, 2016.
  3. ^ "United names former Air Canada CEO Robert Milton as chairman, settles proxy dispute". September 2, 2016. Retrieved September 2, 2016.
  4. ^ http://newsroom.united.com/2016-08-18-United-Appoints-New-Senior-Leaders
  5. ^ a b c d e https://finance.yahoo.com/quote/UAL/financials?p=UAL. Missing or empty |title= (help)
  6. ^ https://finance.yahoo.com/quote/UAL/profile?p=UAL. Retrieved March 10, 2017. Missing or empty |title= (help)
  7. ^ "United Fact Sheet". Retrieved July 25, 2012.
  8. ^ "[1]." United Continental Holdings. Retrieved on October 3, 2010.
  9. ^ "United Continental Holdings, Inc. - Investor Relations - News". Ir.unitedcontinentalholdings.com. Archived from the original on July 10, 2012. Retrieved February 12, 2011.
  10. ^ a b "Unitedcontinentalmerger.com". Unitedcontinentalmerger.com. Archived from the original on May 6, 2010. Retrieved October 21, 2013.
  11. ^ "United Continental Holdings, Inc. - Investor Relations - News". Ir.unitedcontinentalholdings.com. Retrieved November 30, 2011.
  12. ^ Peterson, Kyle (November 30, 2011). "United gets FAA single operating certificate". Reuters UK.
  13. ^ "List of Subsidiaries". Sec.gov. Retrieved October 21, 2013.
  14. ^ "United Continental Holdings, Inc. - Investor Relations - SEC Filings". Ir.unitedcontinentalholdings.com. February 25, 2013. Retrieved October 21, 2013.
  15. ^ "Form 8-K for UNITED CONTINENTAL HOLDINGS, INC." (Archived 2014-02-23 at WebCite) Securities and Exchange Commission. April 3, 2013. "On March 31, 2013, United merged with and into Continental, with Continental continuing as the surviving corporation of the Merger and as a wholly owned subsidiary of UAL. Upon the closing of the Merger on March 31, 2013, Continental's name was changed to "United Airlines, Inc." (the "Survivor"). "
  16. ^ "United stands ready to merge". Chicago Tribune. Archived from the original on April 16, 2008. Retrieved July 25, 2012.
  17. ^ "Continental Abandons Merger Talks With United". The New York Times. April 28, 2008. Retrieved May 26, 2010.
  18. ^ "Continental Airlines". Continental.com. Archived from the original on June 28, 2008. Retrieved July 25, 2012.
  19. ^ "UAL, USAir in very advanced merger talks - Business - US business - Aviation | NBC News". MSNBC. April 28, 2008. Retrieved October 21, 2013.
  20. ^ Johnsson, Julie (June 20, 2008). "United, Continental join forces". Chicago Tribune. Archived from the original on July 2, 2008. Retrieved June 20, 2008.
  21. ^ "United and US Airways Said to be in Merger Talks". New York Times. April 7, 2010. Retrieved April 7, 2010.
  22. ^ Reed, Dan (April 22, 2010). "Irked US Airways ends merger talks with United". Usatoday.Com. Retrieved May 3, 2010.
  23. ^ Press Release. "Press Release | Let's Fly Together". Unitedcontinentalmerger.com. Archived from the original on May 6, 2010. Retrieved May 3, 2010.
  24. ^ "Love is in the air". The Economist. May 6, 2010.
  25. ^ a b "United and Continental Airlines to merge". BBC News. May 3, 2010. Retrieved May 3, 2010.
  26. ^ "Unitedcontinentalmerger.com". Unitedcontinentalmerger.com. Retrieved October 21, 2013.
  27. ^ "United, Continental create world's biggest airline". The Sydney Morning Herald. May 4, 2010. Retrieved May 3, 2010.
  28. ^ https://www.google.com/hostednews/ap/article/ALeqM5iLtBZzKBc8HAtWTZlIMlpoajQZnQD9H7ILIO0. Retrieved April 3, 2011. Missing or empty |title= (help)[dead link]
  29. ^ Mouawad, Jad (August 27, 2010). "United-Continental Merger Clears Federal Hurdle". The New York Times.
  30. ^ "United Continental Holdings, Inc. - Investor Relations - News". Ir.united.com. Retrieved July 25, 2012.
  31. ^ "United Airlines - Airline Tickets, Vacations Packages, Travel Deals, and Company Information on united.com". Continental.com. Retrieved July 25, 2012.
  32. ^ JOSHUA FREED (November 29, 2011). "Pilots: United gets single operating certificate - Yahoo! News". News.yahoo.com. Retrieved July 25, 2012.
  33. ^ "United Continental Holdings Financial Statements 2005-2018 | UAL". www.macrotrends.net. Retrieved 2018-10-31.
  34. ^ "Fortune 500 Companies 2018: Who Made the List". Fortune. Retrieved 2018-11-10.
  35. ^ "United, Continental Show Off New Livery". AOL Travel News. August 12, 2010. Retrieved February 12, 2011.
  36. ^ Brookson, Ben. "Here's what United's CEO thinks of the carrier's new livery - Flight International". Flightglobal.com. Retrieved February 12, 2011.
  37. ^ Boeing 747 Debuts in New United Livery United Continental Holdings PR, February 24, 2011
  38. ^ "United Airlines launches new campaign from Kaplan Thaler/New York". Chicago Sun-Times.
  39. ^ "Company Overview". United.
  40. ^ "Investor Day" (PDF). United. November 15, 2016.

External linksEdit