US Clears American US Airways Merger with Conditions

US Clears American, US Airways Merger with Conditions

"This agreement has the potential to shift the landscape of the airline industry," Attorney General Eric Holder said.

WASHINGTON - The U.S. government on Tuesday cleared the proposed merger between American Airlines and US Airways after they agreed to give up slots and gates at seven key airports.

American's parent, AMR Corp. and US Airways will divest the slots and gates to "low-cost" airlines "in order to enhance system-wide competition in the airline industry resulting in more choices and more competitive airfares for consumers," the Justice Department said in a statement.

The two will have to give up rights at Boston's Logan International, Chicago's O'Hare, Dallas Love Field, Los Angeles International, Miami International, New York's LaGuardia and Reagan National in Washington.

"This agreement has the potential to shift the landscape of the airline industry," Attorney General Eric Holder said in the statement.

"By guaranteeing a bigger foothold for low-cost carriers at key U.S. airports, this settlement ensures airline passengers will see more competition on nonstop and connecting routes throughout the country," he said.

The agreement would settle an August antitrust lawsuit against the merger brought by the Justice Department, six states and Washington, the District of Columbia. It requires court approval.

Copyright Agence France-Presse, 2013

TAGS: Regulations
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