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EU backs United-Continental merger

Associated Press / July 28, 2010

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BRUSSELS — The European Commission has approved the United Airlines-Continental Airlines merger, saying it will have just a small effect on the market share of the two carriers on lucrative North Atlantic routes.

The European regulatory body said the combination of the two US carriers will not give rise to any specific concerns because their passenger and cargo routes between Europe and North America largely overlap.

The two airlines have been losing money, first from high fuel prices, then from the recession. United is acquiring Continental through a stock-swap deal, with the new airline to be called United. US regulatory approval is expected in August.