Passengers Sue To Block UAL/CAL Merger

Titlu: Passengers Sue To Block UAL/CAL Merger
Sursa: http://news.airwise.com/story/view/1277852304.html
Autor: Reuters
Data: 29.06.2010

Citat :

The proposed merger of United Airlines and Continental Airlines would lessen competition and lead to higher fares, according to a lawsuit filed on Tuesday by a group of customers seeking to block the deal.

The complaint, filed in US District Court in San Francisco, says the planned merger to form the world's largest airline could result in higher fares and service cuts.

"The effect of the announced merger between United and Continental may be to substantially lessen competition or to tend to create a monopoly," according to the lawsuit, which lists more than 45 individuals plaintiffs.

United said in May that it would buy Continental in a USD$3 billion all-stock deal. The new airline would fly under the name United. The Justice Department must still approve the transaction.

"We believe this suit has no merit, and we will vigorously defend what we strongly believe to be a transaction that is in the best interests of Continental, its shareholders and the flying public," Julie King, a spokeswoman for Continental, said in a statement.

United spokeswoman Jean Medina said the airlines are cooperating with the DOJ and that the merger would "benefit customers with the most comprehensive route network."