Book Description

In early May 2010, United Air Lines and Continental Airlines announced plans to merge the two airlines and signed a merger agreement. The passenger airline industry has struggled financially over the last decade, and these two airlines believe a merger will strengthen them. However, as with any proposed merger of this magnitude, this one will be carefully examined by the U.S. Dept. of Justice to determine if its potential benefits for consumers outweigh the potential negative effects. This statement describes: (1) an overview of the factors that are driving mergers in the industry; (2) the role of federal authorities in reviewing merger proposals; and (3) key issues associated with the proposed merger of United and Continental. Illustrations.