One of the biggest mergers has just occurred between two of
the airline industry's most mammoth air carriers. The related
airline exchange traded fund (
) and shares are moving on the news.
Two of the airline industry's largest carriers are merging to
create the largest airline company ever. United Airlines
) and Continental Airlines (NYSE:
) announced a $3 billion merger this morning.
Jad Mouawad and Michael de la Merced for
The New York Times
the all-stock deal would form a coast-to-coast American behemoth
with a leading presence in the top domestic markets, including New
York, Chicago and Los Angeles, along with an extended network to
Asia, Latin America and Europe. [
the Airline Industry Rebound?
Together, these companies would create tight low-cost
competition to both home and abroad travelers. Continental will
keep their presence, with current logo, livery and colors and
maintain a large presence in Houston.
Christopher Hinton for MarketWatch reports that
this deal is spurring further deals and mergers within the
This deal will provoke both airlines to create one world-class
airline, with strength and staying power for the long-term. [
Iceland's Impact on Airline ETF.
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Claymore/NYSE Arca Airline (NYSEArca:
Continental is 15.2%; Delta is 15.9%; United Airlines is 4.1%.
FAA is up nearly 2% this morning in the wake of the deal.