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Finally American Airlines and US Airways merger on the cards

by Richa 15. November 2013 05:52

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.

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Tags: american airlines, merger, u.s. department of justice, us airways

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