US Airways, American Airlines merger allowed by Justice Dept. - FOX 10 News | myfoxphoenix.com

US Airways, American Airlines merger allowed by Justice Dept.

Posted: Updated:
WASHINGTON (Associated Press) -

The Justice Department says it has reached an agreement to allow American Airlines and US Airways to merge, creating the world's biggest airline.

The agreement requires the airlines to scale back the size of the merger at Washington's Reagan National Airport and in other big cities.

In August, the government sued to block the merger, saying it would restrict competition and drive up prices for consumers on hundreds of routes around the country.

The airlines have said their deal would increase competition by creating another big competitor to United Airlines and Delta Air Lines, which grew through recent mergers.

The settlement reached Tuesday would require approval by a federal judge in Washington. It would require American and US Airways to give up takeoff and landing rights or slots at Reagan National and New York's LaGuardia Airport and gates at airports in Boston, Chicago, Los Angeles, Dallas and Miami to low-cost carriers to offset the impact of the merger.

Attorney General Eric Holder said the agreement would ensure more competition on nonstop and connecting routes throughout the country. The department called the slot and gate divestitures at key airports "groundbreaking."

Follow Us!

Share Your Photos & Video

  • Metro HeadlinesMore>>

  • City council considering garbage collection fee

    City council considering garbage collection fee

    Thursday, April 24 2014 12:27 PM EDT2014-04-24 16:27:12 GMT
    money-roll-genericmoney-roll-generic
    Chicago residents may soon be paying more for garbage to help pay for the city's pension mess.
    Chicago residents may soon be paying more for garbage to help pay for the city's pension mess.
  • Man charged in police chase that injured 5 at bus stop

    Man charged in police chase that injured 5 at bus stop

    Thursday, April 24 2014 11:45 AM EDT2014-04-24 15:45:16 GMT
    A South Side man has been charged in connection with a police chase Tuesday night that ended when his vehicle collided with another vehicle and crashed into a bus stop, injuring five people in the Roseland neighborhood.
    A South Side man has been charged in connection with a police chase Tuesday night that ended when his vehicle collided with another vehicle and crashed into a bus stop, injuring five people in the Roseland neighborhood.
  • Man found dead after Oak Lawn gas leak

    Man found dead after Oak Lawn gas leak

    Thursday, April 24 2014 11:38 AM EDT2014-04-24 15:38:05 GMT
    A man was found dead inside his home by crews responding to a gas leak Wednesday evening in southwest suburban Oak Lawn.
    A man was found dead inside his home by crews responding to a gas leak Wednesday evening in southwest suburban Oak Lawn.
Powered by WorldNow

KSAZ-TV & KUTP
511 W. Adams St.
Phoenix, AZ 85003

Phone: (602) 257-1234
Fax: (602) 262-0177

Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices