European officials have given Continental Airlines and United Airlines their blessing for a proposed US$3 billion merger that will create the world's largest airline. The deal, now in U.S. regulators' hands, is set to close late in 2010 barring any unforeseen obstacles.

The EU's approval was unconditional. In a Reuters news report, an EU executive said: "The Commission's investigation confirmed the complementary nature of United's and Continental's respective networks as regards transatlantic EEA-US routes and the fact that their combination will not give rise to concerns on any specific route."

United and Continental have boasted that their union would be "a merger of equals," however their route systems are anything but, and that may work to their advantage. After the European regulators found no considerable worries over the two airlines' EU-U.S. route systems, approval was practically assured. Domestically, the airlines have cited few overlaps in their route systems and therefore expect a similar decision from U.S. regulators. The only possible fly in the ointment could come from the opposition from some members of the U.S. Congress. Though they cannot block the deal, members can cast doubt over the benefits of the merger among regulators and the public at large. Particular influence can be had with the Justice Department via the House and Senate Judiciary Committees. The merger must be approved by the Justice Department, which is reviewing its impact on airline competition. A Government Accountability Office report said combining the two airlines would result in a loss of one competitor in 1,135 markets affecting almost 35 million passengers. That would be offset somewhat by the creation of a new competitor in 173 markets affecting 9.5 passengers, according to the Associated Press.

The merged airline will be based in Chicago, United's current headquarters but will maintain secondary administrative focus in Houston, Continental's current base. They will initially operate a total of 10 hub cities. United, whose prized Pacific routes were acquired from the now-defunct Pan American World Airways in the 1980s, currently serves 9 destinations in the EU. Continental serves 26. Together, the two airlines will form the world's largest, serving up 370 destinations around the world.