SAO PAULO (Dow Jones)--The company arising from the proposed merger of Continental Airlines Inc. (CAL) and UAL Corp.'s (UAUA) United Airlines will initially focus on integration and it is premature to talk about the possibility of taking stake in Brazilian airlines, Jeff Smisek, the chief executive of Continental and the planned CEO of the merged company, said Thursday.
"We plan to work with our new partner (Brazil's leading airline) TAM in the region," he told Dow Jones Newswires at an event in Sao Paulo.
On Thursday, TAM S.A. (TAM, TAMM4.BR) joined the Star Alliance group of global carriers of which both United and Continental are members.
Brazilian lawmakers are considering proposals to raise the limit on foreign shareholdings in Brazilian airlines to 49% from 20%, widening the scope for strategic alliances with international carriers.
According to Glenn Tilton, chief executive at United Airlines, the merged airline, which would be the world's largest, will focus on cementing the alliance formed with TAM as means of expanding coverage in South America.
Newswires
-By Alastair Stewart; Dow Jones Newswires; 5511 3544-7072; alastair.stewart@dowjones.com
