Continental and United Airlines have agreed to merge, which many say will result in the loss of hundreds of airline jobs in Chicago and in other parts of the United States where Continental has established hubs (click here).

A formal announcement will come on Monday.

According to Chron.com, the carrier will be based in United’s home of Chicago and take United’s name, the sources said. Jeff Smisek, chairman, CEO and president of Houston-based Continental, will be CEO of the merged carrier and he will have offices in Houston and Chicago, they said.

United’s CEO Glenn Tilton will become non-executive chairman until Dec. 31, 2012, or on the second anniversary of the closing of the deal, whichever is later. Then Smisek takes the helm as chairman.

The deal — which had earlier bogged down over price — will be an all-stock swap. Continental shareholders get 1.05 United shares for each Continental share they own.

That values the deal at about $3.2 billion, based on Friday’s closing share prices and the latest publicly available outstanding shares. United’s shareholders will own a 55 percent stake in the merged company with Continental’s shareholders holding the remaining 45 percent.

Houston is expected to be the largest hub of the combined carrier and continue to be its gateway to Latin America. Continental employs 16,500 people in Houston and the sources said it should remain a top private employer in the city.

(more…)

Wal-Mart is putting a lot of force behind it’s recent bid to open not one, but two new Supercenters in Illinois, in order to create hundreds of new retail jobs in Chicago.

Wal-Mart wants to open a Wal-Mart Supercenter proposed in the empty lot in the Chatham neighborhood next to the Dan Ryan Expressway. That store, which would create hundreds of union construction jobs and hundreds of ongoing retail sales jobs, has been stalled by the City Council Finance Committee at the behest of organized labor.

The ambitious company is also planning on building a store in an empty lot between 103rd and 111th streets next to the Bishop Ford Freeway. Wal-Mart is the critical element in an ambitious development called Pullman Park, which would bring thousands of jobs to the Far South Side.

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Chicago’s O’Hare Airport has received $410 million in federal funds to complete a modernization plan, a move that will spur on the creation of Chicago transportation jobs.

The plan has created a lot of controversy in the Chicago area.

To detract from the controversy, public officials have pointed to the importance of job creation spurred on by the federal funds.

The O’Hare Modernization Program has faced numerous obstacles including a lawsuit filed by the Village of Bensenville about land acquisition, and a public relations debacle involving relocating graves in St. Johannes Cemetery to make way for new runway construction. The suit was settled in November.

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The summer construction season could turn Chicago’s major east-west expressway into a parking lot, but besides the hassle to commuters, the improvements will create many construction jobs in Chicago.

According to MyFoxChicago.com, the first construction barrels and barriers were scheduled to go up at 7 p.m. Wednesday.

The closures will involve the ramps leading from the Eisenhower expressway to Wacker Drive, lanes on the Congress Parkway Bridge, and lanes on the Eisenhower Expressway from Thorndale to the Circle interchange.

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