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To win antitrust approval for their proposed merger US Airways Group Inc. and American Airlines have both agreed to give up landing spots and gates at a few U.S airports, the department of justice said on Tuesday.
In August the government filed a lawsuit saying US Airways and AMR Corp, parent of bankrupt American Airlines, should be forced to stop the merger, which would be creating the world’s largest airline.
The settlement states that carriers should give up certain landing spots at Reagan National Airport outside Washington and at New York’s LaGuardia Airport. These airports are central to being part of the deal. More access to airports in Boston, Dallas, Miami, Chicago and Los Angeles will be given to the low-cost competitors.
U.S. Attorney General Eric Holder said, “This agreement has the potential to shift the landscape of the airline industry. 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.”
US Airways shares were unpredictable following the news of the settlement. AMR corp. shares have surged 24 percent, to their highest since 2008. The companies have not commented on the settlement.
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Image Credit: The Huffington Post
