American Airlines and US Airways have finally decided to go ahead
with their merger plans and the process is back on track. The two
airlines have finally agreed to give up slots and gates at seven
airports. Media reports recently said that American Airlines and US
Airways have arrived at a deal with the U.S. Department of Justice which
has now put an end to the need for a court trial. The U.S. Department
of Justice was scheduled to hold a court trail over the merger issue
starting from November 25, 2013. The deal has now paved way for the
creation of an enlarged American Airlines next month.
The U.S. Department of Justice said that under the terms of the
agreement the six U.S. states plus the District of Columbia, American
Airlines and US Airways will be relinquishing the slots and gates to
low-cost airlines. According to the U.S. Department of Justice, this is
necessary to enhance system-wide competition in the airline industry
that would ultimately provide more choices and more competitive airfares
for the customers.
Media reports indicated that American Airlines and US Airways would be
giving up 52 slot pairs at Ronald Reagan National Airport in Washington
D.C. and 17 pairs at New York’s LaGuardia Airport. The two carriers
would also hand over two gates at each of Dallas and Love Field, Los
Angeles International Airport, Boston Logan Airport, Chicago O’Hare
International Airport and Miami International Airport.