Justice Dept. signs off on UA-CO merger after carriers agree to divest slots at Newark

By Aaron Karp | August 30, 2010

Continental 737-900. Photo: By Rob Finlayson.

The US Dept. of Justice on Friday said it had closed its investigation into the proposed merger between United Airlines and Continental Airlines after the carriers agreed to address competition concerns in the New York market by leasing 18 slot pairs at Newark International to Southwest Airlines.

Under the agreement with SWA, announced shortly before DOJ cleared the merger, the LCC will gain the right to operate up to 36 daily flights to/from EWR "with some flights beginning in March 2011 and a full schedule in place by June 2011," the carriers said. SWA said, "Details on what cities Southwest will serve from Newark and on what dates that service will begin have not yet been determined."

In a statement, DOJ said the transfer of slots and other assets at EWR "resolves the department’s principal competition concerns and will likely significantly benefit consumers on overlap routes as well as on many other routes. The slot transfer is through a lease that permanently conveys to Southwest all of Continental’s rights in the assets, in compliance with FAA rules."

“We are pleased to have achieved this critical milestone and look forward to our respective stockholders’ votes next month, following which we expect to be on track to close our merger by Oct. 1,” said UAL Chairman, President and CEO Glenn Tilton. "The combination of United and Continental will create a world class airline, which will deliver an industry-leading network for our customers and the communities we serve, career opportunities for our people, and value and return for our stockholders." United and CO shareholders will vote on the merger at special meetings scheduled for Sept. 17.

Discuss this news 12

30 Aug01:17

Cereer oportunities for all

By The Fons

Cereer oportunities for all the people that don't work in a cost centre. I guess all call centres will be outsourced, as the first closures have been announced, all other jobs that can be outsourced will go, as Mr. Tilton has shown at UA before. The amount of VP's and their wages will go up significantly though.

30 Aug09:13

Don't quite understand WHY

By reece

Don't quite understand WHY Southwest is entitled to any slots at EWR.........why the sudden favouritism of Southwest at the expenses of OTHER carriers? I would like to see a LEVEL playing field........W-h-y only SWA? US/DL/AA and everyone else should tell the damn government BUTT OUT!

30 Aug11:18

A sad day in aviation

By Frank

A sad day in aviation history. One of the final steps in the complete & total disappearance of the once "Proud Bird"! The very final step will be when the customer service is UA quality, not CO! That noise you just heard was Bob Six (rip) turning over in his grave.......AGAIN!

30 Aug14:52

Here we go! Further

By Prootwadl

Here we go! Further consolidation after the complete removal of any competition based on service. Customers wanted a bus in the sky ... they're getting it. Crap service at a low, low price...

30 Aug16:15

If the government wanted to

By 3 x Union Furloughed

If the government wanted to help the mergers success they should require the labor groups to oust the unions so they would stop forcing furloughs every few years. Yes SWA is the US's wonder boy airline. They can do no wrong. The government has paid for most of their pilot training through VA loans as well.

30 Aug17:29

This is off the Cuff.

By Ernest M. Schimmer

This is off the Cuff. January 1952 I just graduated from USC- with a B. S. in Commercial Aviation. I would be taking my first Air Cargo Trainee Position with SLICK AIRWAYS at EWR. Enroute in my 1946 Custom, 1946 Convertble. Enroute to EWR
They had the Third Crash at EWR Airport.
SLICK ADVISED ME that they were moving to
IDL Airport. Yeh, they moved into a Tent at
the end of runway 42. Kinda Cold out there
so they imported some Smudge Pots from California to keep us warm. We had a few 40 foot containers to put cargo into when
necessary. We had a small office at the regular Air Cargo Area. A true Story.
Any body remember SLICK AIRWAYS??
ERNESTO SCHIMMER SIGNING OFF..

30 Aug18:06

it's time to legalize

By jambone

it's time to legalize marijuananad end all the suffering we must endure.yea boyeee.

30 Aug19:01

Your note looks good until

By Curt Carlson

Your note looks good until you talk about the tent at the end of runway 42. There are no runway 42's anywhere in the world. Runways are numbered for compass direction.

30 Aug20:48

Frank, you may want to review

By pacman

Frank, you may want to review the DOT consumer reports, Continental receives its share of complaints in the "customer service" category (CO =14 , UA = 15 in June,2010). Considering UA enplanes significantly more pax CO doesn't come off looking all that swell. In addition, CO usually involuntarily DBs more pax than UA (by a significant margin).

01 Sep08:49

Well Pacman, as an obviously

By Frank

Well Pacman, as an obviously well informed DOT reader, you should know that the DOT reports tell one piece of the equation. It's an average assessment based on a combination of customer complaints & the airline's own reporting to the DOT (?questionable?). Only the "cheaters" know if they cheat, the rest of us can only surmise. My statement about service has nothing to do with the DOT reports, it's based solely on my own personal frequent experiences flying both UA & CO. CO's aircraft configurations are much more passenger friendly than UA; especially international. UA's economy seating should be against the law, thankfully I'm not punished internationally. Staff from bag check to lost & found & everything in between is generally much more friendly. My personal opinion is that it is a reflection of the union environment at UA. With 100K miles +/- on each per year, for 20+ years, I don't need DOT reports to tell me what UA & CO service levels are.

05 Sep04:45

Reece, you are correct, esp'

By IguanaDC3

Reece, you are correct, esp' w/ your last words.
Frank, you've earned the benefit of the doubt, yes, but not ALL is lost @ UA & you should therefore give THIS the benefit of the doubt as well. And believe me, as a proud DL vet' and an admirer of AA for yrs, it pains me to be fair about this, ha haa.
And finally, Mr Schimmer --- what's your posting have to do w/ ANYTHING?!
Sigh...

26 Jul19:12

My Dad, Bob Morgan, flew for

By Jan Morgan

My Dad, Bob Morgan, flew for Slick and then for Airlift. He is now 86 and is active in several aviation museum groups. How long did you fly with Slick?
Do you know of any other Slick pilots living? I found Bill Willoughby's recent obit.