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Oberstar opposes United-Continental deal

Mon May 3, 2010 5:45 AM EDT
us-news, business, us, justice-department, united-airlines, continental, continental-airlines, united-continental, house-transportation
Associated Press
United Airlines CEO Glenn Tilton says the industry is facing stiff competition.
< PreviousNext >
showing 1 of 8 photos
<p>A Continental Airlines plane passes an Untied Airlines plane parked at a gate at George Bush Intercontinental Airport Sunday, May 2, 2010, in Houston. Directors at Continental and United airlines have approved a deal that would combine them into the world's largest airline, a source with knowledge of the situation said on Sunday, May 2, 2010. (AP Photo/David J. Phillip)</p>

A Continental Airlines plane passes an Untied Airlines plane parked at a gate at George Bush Intercontinental Airport Sunday, May 2, 2010, in Houston. Directors at Continental and United airlines have approved a deal that would combine them into the world's largest airline, a source with knowledge of the situation said on Sunday, May 2, 2010. (AP Photo/David J. Phillip)

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WASHINGTON — The chairman of the House Transportation committee is asking the Justice Department to block the planned combination of United Airlines and Continental.

Congressman Jim Oberstar is a Democrat from Minnesota. He says the United-Continental deal will move the country toward having an airline system dominated by three mega-carriers. The deal would make United the world's largest airline.

In 2008, Oberstar opposed the purchase of Minnesota-based Northwest Airlines by Delta Air Lines. Antitrust regulators approved it anyway.

United and Continental have said only a handful of their domestic routes overlap.

The deal needs approval from antitrust regulators and shareholders. The companies are hoping to close it by the end of the year.

© 2010 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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  • Public Discussion (1)
sarahblue36

I think it will be interesting for these two airlines to combine, however, they need to not monopolize and put higher prices for consumers.

    Reply#1 - Wed May 5, 2010 10:37 AM EDT
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