Justice Dept. Approves Merger of American Airlines, US Airways
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American Airlines(WASHINGTON) — The last major hurdle in the merger of bankrupt American Airlines and its smaller competitor, US Airways, has been cleared. The U.S. Department of Justice is dropping an antitrust lawsuit that aimed to block the merger.
The government, along with six states and the District of Columbia, sought to block the deal, saying it would hurt competition in the airline industry and force consumers to pay the price in higher fares and fewer routes.
As part of an agreement, American Airlines and US Airways will have to turn over landing slots and facilities at seven airports across the country to low-cost airlines, allowing for competition at airports in Boston, Chicago, Dallas, Los Angeles, Miami, New York and Washington.
The CEOs of both airlines held a conference call hailing the deal and expressing confidence they will combine into the world’s largest airline by the middle of next month.
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