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The EU gave its approval to United and Continental

July 28, 2010

The European Commission, guardian of competition in Europe, has given the green light Tuesday to approximation of U.S. airlines Continental Airlines and United Airlines, which will give birth to the world leader in the industry.

"The Commission's investigation confirmed the complementarity of networks of United and Continental for the transatlantic routes between the European Economic Area and the United States and the fact that the merger will not cause any problem on any route in particular, "said the statement from Brussels.

United Airlines, the third American company, Continental Airlines and fourth, had announced in May their intention to merge under the single name of United.Combined, they have access to 370 destinations in 59 countries, with a combined turnover of 29 billion dollars, a fleet of nearly 700 aircraft and about 87,000 employees worldwide.

Complementary networks

Brussels noted in its survey of overlapping activities of both companies in the regular transport of freight (where the impact is in her "limited") and passengers between Europe and the United States.In the latter case, the networks of both companies, however, are "complementary insofar as they operate hubs in different U.S. cities" and so there will be a "marginal increase in market share", he stresses Brussels .

By marrying, United Airlines and Continental Airlines hope to better withstand the challenges currently facing the sector: competition from low-cost airlines, concerns about terrorist threats, volatility of fuel prices, global economic …

Both companies hope to close the deal said the fourth quarter of 2010. After the Europeans, they will however still get approval from U.S. antitrust authorities, who have already rejected in the past other mega-mergers "in the sector.The Justice Department had opposed in 2001 and the approximation of United Airlines and U.S. Airways, saying it would reduce competition in the aviation industry in the United States to the detriment of the public.

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