Airline-Merger Plans get go from Regulators
UAL Corp.'s United Airlines and Continental Airlines Inc’s merger was approved by the United States Antitrust Regulator said Senator Kay Bailey Hutchison. The Justice Department which can reject or approve the merger will now give the merger the gren signal. "I do think it's going to pass regulatory muster, but I do think it's going to be tough," Republican of Texas Hutchison said.
The Senate Commerce Committee hearing which set for hearing on the merger passed the merger after meeting for the third time this week. Hutchison rejected the merger as it could lead to loss of jobs in her state after Continental’s Houston head office will merge with United’s in Chicago.
CEO Jeff Smisek of Continental believe the merger will not lead to an excessive loss of employment and the expected losses will prove to have improved the econmy in the long run.
Senate Commerce Committee Chairman John D. Rockefeller also supported the bill and insisted that the merger will improve the status of the airline industry. The merger will "creates the conditions not only to survive, but also to thrive in a competitive global industry,” he said.
"Today, international competitors have emerged and powerful new entrants have continued to gain ground," Glenn Tilton, CEO of UAL Corp's United said.
"The merged Continental/United will allow us, as a U. S. carrier, to compete effectively," Continental CEO Jeffery Smisek said. "We have low-cost competition in all of our hubs, as does United Airlines. We have to compete against those lower costs."