The Justice Department announced Tuesday that it has given antitrust clearance to Southwest Airlines Co.'s (LUV) planned acquisition of AirTran Holdings Inc. (AAI), saying the merger wouldn't substantially lessen competition.

The department's antitrust regulators said the merged firm would be able to offer new service on routes that neither airline serves today.

The department said that although the discount carriers have overlaps on certain nonstop routes, it didn't challenge the merger "after considering the consumer benefits from the new service."

The airlines announced the $1.4 billion deal last September.

-By Brent Kendall, Dow Jones Newswires; 202-862-9222; brent.kendall@dowjones.com
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