The immediate impact of the US Department of Justice's approval
of the proposed merger between Continental and United Airlines:
less competition and higher prices for consumers.
"The merger still needs to be approved by the shareholders,"
said ChattahBox. "But with the stamp of approval from the Justice
Department, it looks like a done deal."
In a statement, the Justice Department said it was satisfied
that the airlines did not have so much overlap in their routes that
consumers would be harmed by higher prices and limited flight
choices."
The combination of the country's third and fourth biggest
airlines means the number of industry players - and options for
fliers - continues to shrink, despite the government's
position.
"Upon completion, the proposed $3.17 billion merger will leave
just four traditional carriers in the US, and possibly three if
American Airlines responds by bidding for US Airways, as some
analysts predict," said ChattahBox.
The Justice Department's statement said a "thorough
investigation" was conducted to ensure competition survived the
merger:
"The proposed merger would combine the airlines' largely
complementary networks, which would result in overlap on a limited
number of routes where United and Continental offer competing
nonstop service," said Justice.
Once the two airlines merge, the new company flying under the United banner would become the world's largest airline.
