In this note, we will discuss the rationale behind the deal, and DOJ’s lawsuit, and how will it impact the two airlines. The US Department of Justice's antitrust division has sued both United and Delta for entering into an agreement which would hamper competition in Newark, and is likely to lead to higher air fares for the passengers. Kennedy Airport, have been put under the scanner.
Now, the airline's plans of acquiring takeoff and landing slots at the Newark Liberty International Airport from Delta Air Lines in exchange for slots at the John F. Earlier this year, the Chicago-based airline's Chief Executive Officer had to step down due a federal investigation charging him of trading favors with the officials of the Port Authority of New York and New Jersey. While a majority of the airlines are flourishing in the low commodity price environment, United Continental's struggle doesn't seem to be ending.
