Airline Merger Creates World's Largest Carrier

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United Airlines announced it is buying Continental Airlines, and together they will create the world's largest carrier.

The $3 billion deal will form a parent company large enough to trump Delta in size.

It will be based out of Chicago and keep the name United.

Investors believe consolidating the two companies will decrease the number of flights and drive up ticket prices.

However, both companies insist the merger will not increase travel fares.

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