Continental Airlines and United Airlines Cleared for Tie Up
Dave BondReports now clearly show that the United States Department of Justice has given the go ahead for the proposed $3 billion merger between Continental Airlines and United Airlines. This new airline will now be the world’s largest airline as early as next month.
In order to get the tie up approved, the airlines did have to give up a few things. Most notably they had to give up 18 daily flights from new York’s Newark airport. These slots will be given to the low cost carrier Southwest.
There is still one more hurdle that has to be cleared in order for this tie up to be finished. This hurdle is the shareholders. Apparently the shareholders will meet to talk about weather to approve the tie up or not. This meeting will take place next month.
This new airline will be huge. Right now United Airlines already operates 3,400 daily flights to 230 locations around the world. The airline by itself employes 46,000 staff. Continental Airlines on the other hand has 2,700 daily departures. It is able to serve some 170 destinations. The airline staffs some 40,000 employees.
The United States Justice Department said that the transfer of slots and other assets at Newark resolves the department’s only real competition concerns. It is very likely that people are going to gain a lot from this new tie up.
Of course, these are not the only airlines that are trying to get a tie up approved. In fact, many airlines are trying to get tie ups approved as a way of dealing with the ever changing economic time. British Airways is currently trying to merge with the Spanish airline known as Iberia. They are also in the middle of forming a transatlantic tie up with American Airlines.
/images/rssicon.jpg "Subscribe to RSS feed")
Subscribe for free and recieve the latest Self-Catering-Breaks news and stories
Filed under Business & Finance, Travel News, World News