Southwest to buy AirTran

Southwest Airlines announced Monday that it would be acquiring low-cost competitor AirTran Airways for an estimated $1.4 billion.

With the possible purchase of AirTran, Southwest would gain a bigger presence in Atlanta's busy airport, as well as New York's LaGuardia and Boston's Logan.

The announcement comes just as United and Continental Airlines were granted approval to merge, making the combined carriers the largest airline in the world. 

The deal should be finalized by early to mid-2011. 

Source: Market Watch