United and Continental have merged and will be called United in a deal that will make them the largest airline in the world. Globally, the airline would have a 7% part of the airline market, and 20% domestic share.

For consumers, this means higher airline prices and fewer routes. Over the course of the past decade, however, certain mergers have had to fight with discount airlines like Southwest, and JetBlue, along with other factors that have harmed the industry, like the terrorist attacks of 9/11, rising oil prices, and the recession.

The companies had begun talks in the past, but those deteriorated due in part to United’s weak financial health. In 2008, Continental was on the buying side. The falling through of these talks served as a preliminary to what helped the companies merge so quickly.

The company will be called United, will be based in Chicago – a city that has badly desired a major corporation to call it home – and will be run by United’s chairman for two years, until Mr. Smisek of Continental will man the helm. It will also keep the Continental colors and retain a large presence in Houston. Other airports where the new airline will be prominent include: SFO, Newark, and O’ Hare.