American Airlines – US Airways merger

The proposed reverse takeover of American Airlines by US Airways could be finalised by the end of the year following approval by US regulators.  The merger would create the world's largest airline.  The new American would continue as a member of oneworld and maintain its commercial tie-up with British Airways.

As part of the agreement, which must still be approved by a judge, the airlines will give up 57 slots at Washington National Airport and 34 at New York City LaGuardia plus a nominal number at Boston Logan, Chicago O'Hare, Dallas Love Field, Los Angeles and Miami airports.

The US Justice Department had sued to stop the US$11bn (£6.9bn) merger in August, arguing it would reduce competition and result in higher prices for consumers.

"This agreement has the potential to shift the landscape of the airline industry...[and] ensures airline passengers will see more competition on non-stop and connecting routes throughout the country", said Attorney General Eric Holder in a statement.

American Airlines is still trading in bankruptcy, the restructuring planned to complete a turnaround.

The US Justice Department had been joined by the attorneys-general of Arizona, Florida, Pennsylvania, Michigan, Tennessee, Virginia, and the District of Columbia, but all have agreed to the proposed settlement. www.aa.com

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