EU OKs United-US Airways Deal

Friday, January 12th 2001, 12:00 am

By: News On 6

BRUSSELS, Belgium (AP) â€” The European Union approved United Airlines' $4.3 billion bid to acquire US Airways, saying Friday that its concerns that the deal would reduce competition between Europe and the United States had been addressed by United's commitment to sell some airport landing and takeoff rights in Germany.

The proposed combination is also being examined by American regulators.

The European Commission, the EU's executive arm, said the deal by UAL Corp., United's parent company, to acquire US Airways Group Inc. could reduce competition on four trans-Atlantic routes between Munich and Philadelphia and between Frankfurt and Philadelphia, Charlotte, N.C., and Pittsburgh.

``In order to overcome the commission's concerns, United has committed itself to make available slots at Frankfurt and Munich that will facilitate the market entry of competing airlines,'' the EU said.

United Airlines is a member of the Star Alliance, which in Europe includes Lufthansa of Germany and the Scandinavian carrier SAS. It also has an extensive trans-Atlantic cooperation agreement with Lufthansa.

The EU said the commission had been worried the combination ``would substantially reduce the competition previously existing between US Air and Lufthansa.''

The proposed merger between United, the largest airline in the United States, and US Airways, the sixth-largest, would give United control of more than 25 percent of the U.S. air travel market.

``Today's approval by the European Commission is a very significant step forward,'' said Stephen M. Wolf, chairman of US Airways. ``The commission conducted a very thorough review, and we appreciate the swiftness of its approval.''