Your SlideShare is downloading. ×
0
A report on merger & acquisition of united
A report on merger & acquisition of united
A report on merger & acquisition of united
A report on merger & acquisition of united
A report on merger & acquisition of united
A report on merger & acquisition of united
A report on merger & acquisition of united
A report on merger & acquisition of united
A report on merger & acquisition of united
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

A report on merger & acquisition of united

368

Published on

Published in: Education
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
368
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
11
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. A Report on Merger & Acquisition of United Airlines & Continental Airlines Submitted to Mr. Soumen Mukherjee By Amit Kumar
  • 2. Points to be covered……………1.Compulsion/Attractiveness of the Deal2.View on success/Failure of the deal3. Way Forward
  • 3. A comparative Introduction……………............................Organization United Airlines Continental Airlines United Continental HoldingsFounded April,1926 July,1934 May 2010Headquater Chicago,USA Houston,USA Chicago USARevenue(FY 09-10) $ 16.335 $ 12.586 $ 23.229 billions(Annual billions(Annual billions(Annual Report 2009) Report 2009) Report 2010)Operating Income $(161)millions- $ (146)millions FY $ 976 millions FY2009,$(4438)milli 2009,$(314) ons-FY2008 millions FY2008Passenger (In 55,083 45,573 100,656millions)Presence Pacific Europe,Asia,Canada Africa,Europe,Latin Region,Europe,Latin ,Mexico,Latin America,Asia,Canad America America a,MexicoFlight in a day 3300 3000 5700
  • 4. Route map of Continental Airlines in 2009
  • 5. Route map of United Airlines in 2009
  • 6. Structure of deal & Attractiveness….1. To effect the merger, Continental shareholders received 1.05 shares of UAL stock foreach Continental share; at the time of closing, it was estimated that United shareholdersowned 55% of the merged entity and Continental shareholders owned 45%.2. The U.S. Department of Justice approved the $3 billion merger and shareholders ofboth the companies approved the merger on September 17, 20103. This deal created 2nd Largest Airlines & covered 15.9% of Domestic Market & 12% ofInternational market.http://www.transtats.bts.gov/-----ReferenceOperational Structure……Together United and Continental currently fly to 370 destinations worldwide, flying 144million passengers a year, compare to Delta Airlines, flying 163million passenger a yearto 337 destinations
  • 7. My View on Success/Failure of deal…..• Both companies are full-service airlines and have faced intense competition from low-cost operators• United Airlines parent company UAL reported a loss of $82m for the first three months of the year, after reporting a $1.1bn loss for 2009• Continental reported net losses of $282m last year• My View-Combining the two companies will create the worlds biggest airline, based on the total number of passenger-miles flown• Deal deliver savings of more than $1bn a year• The companies did not cut potential jobs , but said they expected front-line employees to be "minimally affected by the merger", with staff reductions coming from retirements and voluntary redundancy
  • 8. Way Forward….• The Company has taken significant steps towards the operational integration of United & Continental• The company has begun to optimize the gauge & frequency of its fleet in order to meet travel demand & capitalize on its combined global network efficiently• Additional revenue generating & cost saving measures
  • 9. Thank You!

×