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AIRLINES

From Times Staff and Wire Reports

Continental Asset Purchase Being Investigated: The federal government is investigating Continental Airlines Holdings Inc.'s acquisition of assets from defunct Eastern Airlines. U.S. Atty. Andrew J. Maloney in Manhattan is apparently trying to determine whether the parent of Continental, formerly known as Texas Air Corp., improperly paid too little when it got millions of dollars of assets from Continental’s now-defunct sister, Eastern, said a lawyer familiar with the probe. Airline analysts said it raised another question about Continental’s future. The carrier has operated under bankruptcy court protection since last December.


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