Senate committee to examine United/Continental merger

Mon May 24, 2010 7:51am EDT

A Continental Airlines plane is parked next to United Airlines planes at Chicago's O'Hare International Airport May 3, 2010. REUTERS/John Gress

A Continental Airlines plane is parked next to United Airlines planes at Chicago's O'Hare International Airport May 3, 2010.

Credit: Reuters/John Gress

(Reuters) - A Senate subcommittee is set to examine the proposed airline deal between United Airlines and Continental Airlines on Thursday that will study the implications for airline consumers.

United is a unit of UAL Corp.

The Subcommittee on Antitrust, Competition Policy and Consumer Rights will examine the proposed airline merger between United and Continental on May 27, according to a Senate website.

r.reuters.com/bes85k

Also on Thursday, the Senate committee on Commerce, Science and Transportation will examine the financial state of the airline industry and the implications of consolidation.

On May 3, United Airlines, a unit of UAL Corp, said it will buy Continental for about $3.17 billion in an all-stock deal that will form the world's largest carrier.

Antitrust experts believe the Justice Department will clear the deal since there is little overlap of common routes and no shared hubs. Antitrust enforcers, experts said, could require some divestiture to enhance competition.

(Reporting by Sakthi Prasad in Bangalore; Editing by Anshuman Daga)

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Comments (2)
Snowyb wrote:
Unethical practices threaten the economies of the world, yet the merger is pronounced by pundits as likely to be approved? I protest; as a thirty seven year employee, I had my pension cut drastically when UAL used the bankruptcy game to terminate its pension obligations.Now they sit on $4.5 billion US in cash, and can afford to become the world’s largest? The PBGC is in deficit; the Senate committee should make the merger conditional on UAL re-assuming its pension obligations, not reward UAL for foisting its corporate responsibilities onto the public’s sorely strained safety net.
Carthage, Missouri

May 24, 2010 7:33am EDT  --  Report as abuse
tone88 wrote:
Retire, airlines suck… Every last one of them – and the GD unions too.

May 24, 2010 10:51am EDT  --  Report as abuse
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