Directors at Continental and United Airlines have approved a deal that would combine them into the world's largest airline, a source with knowledge of the situation said on Sunday.
The stock-swap deal values Continental at some $3.2 billion.
The Sunday board actions were described by a person with knowledge of the votes, who declined to be identified because the companies plan an announcement on Monday.
Combining Continental and United would leave the U.S. with three big international airlines — the new United, Delta, and American. US Airways Groupalso flies internationally, but its 2009 international traffic was less than one-third the size of American's.
The combined airline will be called United, based in United's hometown of Chicago, and run by Continental CEO Jeffery Smisek. United CEO Glenn Tilton will be chairman.
United, a unit of UAL Corp., is the nation's third-largest carrier by traffic. Continental Airlines Inc., in Houston, is the country's fourth biggest.
Any deal would need the approval of antitrust regulators. The Justice Department approved Delta Air Lines' purchase of Northwest in 2008, which turned Delta into the world's biggest carrier.
