Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Air Algerie investigation continues

Read more

AFRICA NEWS

Dozens of youths trampled to death on Conakry beach

Read more

AFRICA NEWS

Ebola death toll tops 700

Read more

MEDIAWATCH

UNRWA official breaks down over Gaza deaths

Read more

DEBATE

Argentina Defaults - Kirchner Cries Foul Over 'Vulture Funds' (part 2)

Read more

DEBATE

Argentina Defaults - Kirchner Cries Foul Over 'Vulture Funds'

Read more

MEDIAWATCH

Renault's women drivers ad deemed sexist

Read more

FOCUS

Constitution prohibits Aung San Suu Kyi to run for president

Read more

THE BUSINESS INTERVIEW

War and Markets, with Steen Jakobsen, Chief Economist at Saxo Bank

Read more

  • Israel and Hamas agree on 72-hour humanitarian ceasefire

    Read more

  • Interactive: France’s new plan to counter jihadism in Africa

    Read more

  • French Jews speak of growing fear in Paris amid Gaza conflict

    Read more

  • Video: Inside Hamas ‘terror’ tunnels in Gaza

    Read more

  • France remembers murdered socialist hero Jean Jaurès

    Read more

  • Sierra Leone declares state of emergency over spread of Ebola

    Read more

  • Investigators reach MH17 site amid 24-hour ceasefire

    Read more

  • Air France ground workers to strike on August 2

    Read more

  • Scores feared dead in India landslide

    Read more

  • Russia ordered to pay further €1.9 billion to Yukos shareholders

    Read more

  • Iraq's Christians: Nowhere to Run?

    Read more

  • Russia defiant as US, EU unveil 'phase three' sanctions

    Read more

  • US House votes to sue Obama for over-reaching his powers

    Read more

  • Argentina fails to reach deal with creditors

    Read more

Business

EU approves merger which will create world’s biggest airline

Text by News Wires

Latest update : 2010-07-27

The EU's anti-monopoly monitors approved on Tuesday a merger between United and Continental airlines, clearing the way for the creation of the world's biggest airline.

AFP - European competition enforcers on Tuesday cleared a merger between US carriers United and Continental that will create the world's biggest airline.
  
The European Commission "concluded that the transaction would not significantly impede effective competition" in Europe, where the US airlines service a combined 35 destinations.
  
The new airline will fly under the United Airlines name and will hold around seven percent of global airline capacity. It has a market value of around 6.75 billion dollars (5.2 billion euros).
  
The deal needs approval from shareholders of the two carriers as well as US anti-trust authorities, who turned down a United-US Airways deal in 2001.
  
"United and Continental's networks are complementary as they have hubs in different US cities," a statement from the commission said of their passenger transport interests.
  
"The proposed merger therefore only leads to small, incremental increases in the market shares of the parties," with only a "limited impact" on the air cargo transport sector.
  
Struggling with fallout from the worst recession in a generation, terrorism and costs brought on by an Icelandic volcano that forced the suspension of thousands of flights, airlines have been queuing up to join forces.
  
The deal, announced in May, follows Delta's 2008 takeover of Northwest and British Airways tying up with with Spanish carrier Iberia to avoid being sidelined by European rivals Air France-KLM and Lufthansa.
  
United and Continental said in announcing the deal that they hoped to generate annual savings and new revenues of up to 1.2 billion dollars by 2013.
  
The new airline will serve more than 144 million passengers per year with 370 destinations in 59 countries.
  
They are aiming to complete the transaction by the end of 2010.
  
 

Date created : 2010-07-27

  • AVIATION

    Continental, United to merge, creating world's biggest airline

    Read more

COMMENT(S)