United and Continental merge

David J. Phillip / AP
David J. Phillip / AP
By Wade Evans

CHICAGO, Ill. (AP) - United and Continental Airlines have closed a deal to create the world's largest airline pushing Delta to second place.

The company will merge the United name with the Continental logo, and hopes to be fully operational by 2012. Continental operations center in Houston will be dissolved and Chicago will assume the role of headquarters for the merged company.

The company said it expects as much as $1.2 billion in combined new revenue and cost savings by 2013, including up to $900 million in new revenue as its larger network attracts new passengers.