The Justice Department greenlighted the planned merger of United Airlines and Continental Airlines on Friday, paving the way for the creation of the world's biggest airline.
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. Upon completion, the proposed $3.17 billion merger will leave just four traditional carriers in the United States, and possibly three if American Airlines responds by bidding for US Airways, as some analysts predict.
But the United-Continental deal, first announced in May, should not significantly affect travel for Washington area residents, who still have other airline options, according to Rick Seaney, chief executive of the Web site FareCompare. He said that US Airways still has a big presence at Reagan National Airport, while BWI Thurgood Marshall Airport has several low-cost airlines, including Southwest, AirTran and JetBlue.
Antitrust regulators said their chief concern about the deal was that there could be too little competition at Newark Liberty Airport, where Continental has a hub. On Friday, the two airlines agreed to transfer their takeoff and landing slots at Newark to Southwest Airlines, allaying government's concerns and prompting the department to close its investigation.
By Jia Lynn Yang
Washington Post Staff Writer
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