The U.S. Justice Department
approved Southwest Airlines Co. (LUV)’s acquisition of AirTran
Holdings Inc. (AAI), saying it won’t substantially reduce competition.
The presence of low-cost carriers such as Southwest and
AirTran “has been shown to lower fares on routes previously
served only by incumbent legacy carriers,” the department said
today in a statement on its antitrust review of the deal.
The company will be able to offer new routes that neither
airline now serves, including connecting service through Atlanta
from cities currently served by Southwest to cities now served
by AirTran, the government said.
To contact the reporters on this story:
Sara Forden in Washington
Justin Blum in Washington
To contact the editors responsible for this story:
Michael Hytha at firstname.lastname@example.org;
Jim Rubin at email@example.com.
Press spacebar to pause and continue. Press esc to stop.