That proposed merger of United Airlines (serving Duluth with Chicago flights) with Continental Airlines, won’t get the needed nod from the feds without some intensive antitrust scrutiny.
Among the biggest critics in what would result in the world’s biggest airlines is expected to be our own U.S. representative, Jim Oberstar. The deal goes before the House Subcommittee on Aviation which he heads in a hearing June 16. Oberstar has urged the Justice Department to reject the deal, according to The Wall Street Journal.
The merger, anounced May 3, is expected to get greater scrutiny by Obama Aministration than Delta Air Lines’ acquisition of Northwest Airlines did in 2008 under President George W. Bush
Among the anti-trust concerns is whether the resulting mega airlines will have too much power to raise prices and ability to reduce customer service, the Journal said.
Still, the United-Continental marriage is expected to get government approval, though some strings may be attached.
But with the review process taking longer than Delta’s six months, the deal may not close by year’s end as corporate officals had hoped.