Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

United and Continental deal cleared for take off

By Ben Rooney, staff reporter


NEW YORK (CNNMoney.com) -- The U.S. Justice Department said Friday that it has closed an investigation into the proposed merger of United and Continental, paving the way for the airlines to unite later this year.

The $3.2 billion merger, which is pending a shareholder vote next month, is expected to close on October 1, 2010, the companies said in a press release. The airlines announced the all-stock deal in May.

The antitrust probe was closed after the airlines agreed to transfer takeoff and landing rights and other assets at Newark Liberty Airport to Southwest Airlines (LUV, Fortune 500), the Justice Department said in a statement.

"The completion of DOJ's review is an important step on our journey of creating the world's leading airline," said Jeff Smisek, Continental's chief executive. "The DOJ's decision permits us to clear one of the last regulatory hurdles to closing our merger."

The combined company, which will fly under the United (UAUA, Fortune 500) moniker and Continental (CAL, Fortune 500) logo, would be larger than Delta Air Lines (DAL, Fortune 500), which became the country's largest airline when it merged with Northwest Airlines in 2008. It is expected to serve more than 144 million passengers per year and fly to 370 destinations in 59 countries.

The European Commission on the airlines approved the proposed merger in July.  To top of page

Index Last Change % Change
Dow 17,689.86 -56.12 -0.32%
Nasdaq 5,128.28 -0.50 -0.01%
S&P 500 2,103.84 -4.79 -0.23%
Treasuries 2.20 -0.06 -2.78%
Data as of 6:34pm ET
Company Price Change % Change
Bank of America Corp... 17.88 -0.25 -1.38%
Micron Technology In... 18.51 -1.39 -6.98%
Facebook Inc 94.01 -1.20 -1.26%
Apple Inc 121.30 -1.07 -0.87%
Frontier Communicati... 4.72 0.09 1.94%
Data as of Jul 31
Sponsors

Sections

Some families are outraged at the sums they've been offered by Lufthansa as compensation for the Germanwings plane crash in March which killed 150 people. More

The U.S. economy has had pretty ho-hum start to 2015. But the stage is set for a strong second half of the year. More

Fast-food chains that operate in more than 30 locations nationwide are the sole target of a new rule in New York to hike their minimum wage to $15. But consumers and small business owners, as well as some employees, may be the ones to pay the price. More

You can't blame it on the economy anymore. More Millennials now have jobs, but are still living at home. More