The U.S. Department of Transportation gave a route-transfer
exemption for Continental Air Lines Inc. (CAL) and UAL Corp.'s
(UAUA) United Airlines, bringing the two carriers one step closer
to completing their mega-merger.
The exemption "allows the carriers to operate under common
ownership until DOT completes the route-transfer process for a
single operating certificate," according to a filing with the U.S.
Securities and Exchange Commission. Continental, in the filing,
called the move "one of the last regulatory approvals needed to
close the merger."
United and Continental have been moving closer to closing their
deal, recently saying they expect the merger to close Oct. 1 after
they were notified the Department of Justice had concluded its
investigation of the deal. The $3 billion stock-swap deal would
create the world's biggest airline by capacity.
Continental and UAL shares were both down about 1% in early
trading amid broader market declines. Continental's stock has risen
21% this year, while UAL has jumped 59%.
-By Nathan Becker, Dow Jones Newswires; 212-416-2855;
nathan.becker@dowjones.com;