EU clears United-Continental merger

— The European Commission has approved the merger of United Airlines and Continental Airlines, saying it will have only a small effect on the market share of the two carriers on lucrative North Atlantic routes.

The European regulatory body said Tuesday that the combination of the two U.S.-based carriers will not give rise to any specific concerns because their passenger and cargo routes between Europe and North America largely overlap.

The two airlines have been losing significant amounts of money, first from high fuel prices, then from the recession. United is acquiring Continental through a stock-swap deal, and the new airline is to be called United.

U.S. regulatory approval for the merger is expected in August, EU officials said.

The airlines on Tuesday announced the executives who would run the combined airline once the deal closes.

They’ve said all along that the combined airline’s CEO would be Continental chiefJeff Smisek, with United CEO Glenn Tilton as chairman.

Zane Rowe, Continental’s chief financial officer, will keep that job after the deal closes. Continental labor chief Mike Bonds will keep his role, too.

The chief operations officer will be Pete McDonald, who has been with United since 1969. United’s new general counsel, Tom Sabatino, is staying in that job.

United Chief Financial Officer Kathryn Mikells and its president, John Tague, are both leaving after the deal closes.

Business, Pages 22 on 07/28/2010

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