Despite disapproval from major industry players, the US Justice Department has approved the United-Continental merger.

The anti-competition probe ended with both carriers agreeing to relinquish some of their spaces at New Jersey’s Newark airport. Southwest Airlines will be the newest recipient of these slots.

The move will now allow both carriers to join together forming the largest airline the world has seen to date. The combined group has agreed to proceed with the Continental colours but maintain the United Airlines name. The merger has been met by the sector with scepticism as many believe it will hurt competition making ticket prices increase and customer service drop below par.

The proposed merger was revealed in May when both companies, who have recorded major losses during the recession, said the deal would amount to $3.2bn and save both carriers more than $1bn a year. Together, the two airlines will now have 370 destinations around the globe and boast 144 million passengers. Based on the total number of passengers being flown, the companies have now formed the world’s largest airline.

Continental boss Jeff Smisek will take-over as chief executive in the new Chicago-based company and Glenn Tilton, former CEO of United will stay on as a non-executive chairman. The merger must pass one more hurdle as shareholders for both firms have yet to approve the merger. A vote is expected to be held next month.