A statement released yesterday said that the U.S. Justice Department had completed its review of the proposed merger between United Airlines and Continental Airlines. "We are pleased to have achieved this critical milestone," United parent UAL Corp. Chief Executive Glenn Tilton said in the statement. Tilton added that the merger would be finalized by October 1.
"The DOJ's decision permits us to clear one of the last regulatory hurdles," added Continental CEO Jeff Smisek. The merger was announced in May and State attorneys general are still reviewing the planned merger. The merger was signed by regulators in Europe last month.
United and Continental have planned September 17 stockholder meetings to vote for approval of the deal. United and Continental have touted the merger as combining "the two most complementary networks of any U.S. carriers, with minimal domestic and no international route overlaps."
The airlines fly to 370 destinations and they serve a combined 144 million passengers per year. But the merger is not approved by all and the critics of the merger have included Rep. James Oberstar (D., Minn.), the chairman of the House Transportation Committee. During a hearing in June, Oberstar slammed the proposed merger, saying that it is not right to support continued consolidation in the airline industry as it will lead to "little choice for passengers, little choice for cities, little choice for competition."
"The Justice Department ought to turn it down. The moment this thing is approved, I will draft and introduce legislation to reestablish market regulation by the government of airlines," added Oberstar.
