Continental, United merger approved

Shareholders of the No. 3 and No. 4 U.S. airlines voted Friday to merge, creating the world's largest airline.

Stockholders of UAL Corp., the parent company of United Airlines, and stockholders of Continental Airlines approved the merger in separate meetings.

The combined operation will be called United but use Continental’s logo and livery.

The companies have said the merger will save them $1 billion US to $1.2 billion a year by 2013.

The combination leaves the United States with three big international airlines: the new United, Delta and American Airlines. US Airways Group Inc. also flies internationally, but its 2009 international traffic was less than one-third that of American's.

The deal will increase profitability and long-term value, Continental chairman Jeff Smisek said in a news release.

The all-stock merger, valued at about $3 billion, was announced in May.

The United States Department of Justice and the European Commission have approved the merger, Continental said.

It is expected to close by Oct. 1.