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DOJ OKs Continental-United Merger

Wonder how Steven Slater feels about this one. The Justice Department has given the proposed merger of Continental and United Airlines the green light, clearing the way for the companies to combine and become the world's largest airline. The department said the airlines’ routes were different enough that passengers would not be harmed by limited flights or steeper prices. United and Continental are the U.S.’s third and fourth biggest airlines. Their merger would leave American customers with only four main carriers—three if American Airlines offers to by US Airways, as many predict. Regulators were mainly concerned that the deal would shrink competition at Newark's Liberty International, a Continental hub. The airlines agreed to give their takeoff and landing slots there to Southwest Airlines. The government was pleased with that decision, as Southwest is seen as a great antitrust force with its aggressive price-lowering policy.

August 28, 2010 3:21 AM