Deal reached on mega merger between US Airways and American Airlines
- 10 years ago
A merger between US Airways and American Airlines has moved a step nearer after gaining the approval of the US Justice department.
The prospect of creating the world’s largest airline had drawn criticism from the government and six states who joined a law suit to block the merger, saying that it would restrict competition and put up prices.
However Tuesday’s settlement requires the new airline to give up take-off and landing rights to low-cost carriers at major US airports.
Analysts claim the new company will change the landscape of the US airline industry.
US Airways eight-billion-euro acquisition of American – which has just emerged from bankruptcy – has been on the cards since Delta, Northwest and Continental became one.
This latest merger is expected to be completed in December.
The prospect of creating the world’s largest airline had drawn criticism from the government and six states who joined a law suit to block the merger, saying that it would restrict competition and put up prices.
However Tuesday’s settlement requires the new airline to give up take-off and landing rights to low-cost carriers at major US airports.
Analysts claim the new company will change the landscape of the US airline industry.
US Airways eight-billion-euro acquisition of American – which has just emerged from bankruptcy – has been on the cards since Delta, Northwest and Continental became one.
This latest merger is expected to be completed in December.