Judge rules Continental and United merger can go ahead

Dino D'Amore
By Dino D'Amore September 30, 2010 00:39

Judge rules Continental and United merger can go ahead

A San Francisco district judge has denied a preliminary injunction brought by 49 individual plaintiffs who sued UAL claiming its UAL’s merger with Continental Airlines would reduce competition in the airline industry.

Judge Richard Seeborg ruled that the “the plaintiffs have not demonstrated in any way that they themselves will suffer any specific harm” and even went so far to state that UAL and Continental presented a compelling case for a merger which would “bring stability to a turbulent and ailing industry and that, as a result of a combined United and Continental, consumers will benefit from passed on cost savings, new system wide destinations and routes, increased capacity, and a better overall product, and further that employees will benefit from a healthier and more competitive employer.”

The merger, which was announced in May and confirmed by shareholders on September 17, is due to be completed by October 1.

Dino D'Amore
By Dino D'Amore September 30, 2010 00:39
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