Continental-United merger gets OK from European regulators
The European Commission has approved the merger of United Airlines and Continental Airlines, saying it will have only a small effect on the market share of the two carriers on lucrative North Atlantic routes.
The two airlines have been losing significant amounts of money, first from high fuel prices, then from the recession. United is acquiring Continental through a stock swap deal, and the new airline is to be called United. U.S. regulatory approval for the merger is expected in August.
Separately on Tuesday, the Federal Aviation Administration said it is planning a $230,000 civil penalty against Continental because it botched a nose wheel replacement on an airplane in 2008. The fine amounts to $10,454 for each flight before the problem was discovered and corrected.