US-based United and Continental airlines have merged to form the world’s biggest airline.

Described as “a merger of equals” the new airline will fly 144 million passengers a year to 370 locations worldwide.

United Airlines said they would now be able to offer superior service to customers, employees and shareholders.

The International Association of Machinists (IAM), which represents technical instructors and maintenance staff at both airlines, said it must be involved at an early stage in the merger talks to avoid widespread job cuts among its members.

IAM general vice-president Robert Roach said the merger must have broad employee support to go ahead. The association will be working closely with the government departments handling the deal.

The new airline will be called “United”, which is seen as the dominant partner in the merger, but will use the Continental logo and livery.

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Before the merger, American Airlines was the world’s biggest, with United in second and Continental in fifth position.

The top ten is completed by Delta, Air France, Lufthansa, Southwest, British Airways, Northwest and Emirates.