US Clears Southwest-AirTran Merger
by David Koenig
DALLAS (AP) - U.S. antitrust regulators cleared the way Tuesday for Southwest's purchase of AirTran Airways, saying the combination of two big discount airlines isn't likely to hurt competition.
The Justice Department said the airlines overlap on some nonstop routes, but it decided not to challenge the deal because competitors can get airport gates and landing slots on those routes.
Southwest, based in Dallas, plans to close the $1.4 billion purchase on Monday. The deal will immediately increase Southwest's size by one-fourth, although it will temporarily operate AirTran as a separate airline.
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