BRUSSELS (Dow Jones)--The European Commission Tuesday cleared the merger of UAL Corporation's (UAUA) U.S. airline United Airlines and U.S. airline Continental Airlines Inc. (CAL)
The $3 billion dollar deal, initially announced in May, will create the world's largest airline by traffic, transporting 21% of U.S. passengers. The resulting company, United Continental Holdings, Inc., will be 8% larger than Delta Air Lines Inc. (DAL) by number of miles flown by paying passengers, including commuter affiliates.
The commission found there to be few competition overlaps between the airlines on their European routes, as they operated from different U.S. hubs. The airlines also had limited cargo business between the U.S. and the EU.
The combined company will use the United name and the Continental logo and operate out of Chicago, United's current headquarters
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