Justice Department Approves United-Continental Merger

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    TK
    UnitedContinentalMerger.com

    The Justice Department says it has closed its investigation into the proposed merger of UAL Corp. and Continental Airlines Inc.

    Friday's announcement follows an agreement by United and Continental to transfer takeoff and landing slots and other assets at Newark, N.J., Liberty Airport to Southwest Airlines Co.

    "We think this would be a fair solution that would allow Continental and United to create an airline that will provide customers with an unparalleled global network ... while enhancing domestic competition at Newark," said Jeff Smisek, the Continental chairman and CEO who will lead the new airline, to be called United.

    The department said the proposed merger would combine largely complementary networks of the two airlines, resulting in overlap on a limited number of routes. The deal with Southwest resolves the Justice Department's main concerns over competition.

    Shareholders at the two airlines are set to vote on the deal on Sept. 17.

    UnitedContinentalMerger.com