Reports now confirm that the United States Department of Justice has approved the proposed $3 billion merger of Continental Airlines and United Airlines. This is a move that will now create the world’s largest airline.

In order to get permission to join forces, they have agreed to surrender slots for 18 daily flights from New York’s Newark airport. These slots will be given to the low cost carrier Southwest Airlines. The final hurdle is for shareholders to approve this merger of the two airlines. This meeting is set to take place next month. However, most experts do not see why shareholders would not approve this.

United Airlines, which is the founder of the Star Alliance, operates 3,400 daily flights to 230 destinations. It has a workforce of 46,000 staff. Continental has more than 2,700 daily departures serving some 170 destinations. It has some 40,000 employees.

The United States Justice Department said that the transfer of slots and other assets at Newark resolves the department’s principal competition concerns. Passengers are likely to see benefits from this new deal.

Right now this new mega airline is just one of the many mergers that are taking place. Most people seem to agree that airlines are agreeing to team up in order to fight off the hard decline in passengers. In the process, it seems like a few mega airlines are going to be formed, and this is one of them.

Of course, United Airlines is not the only airline trying to get a tie up underway. British Airways is currently trying to merge with Iberia, as well as form a transatlantic tie up with American Airlines.