US Airline Merger Approved By Government

Written By Unknown on Rabu, 13 November 2013 | 00.26

The US Justice Department has reached an agreement to allow the merger of US Airways and American Airlines.

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

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

Tuesday's settlement would require the airlines to give up take-off and landing rights to low-cost carriers at major US airports to offset the impact of the merger.

Attorney General Eric Holder said the agreement would ensure more competition on non-stop and connecting routes throughout the country.

The deal must be approved by a federal judge in Washington before the planned merger can move forward.

The two airlines disclosed in February their plans to create a company with 6,700 daily flights and annual revenue of roughly $40bn (£26bn).

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