AMERICAN Airlines and US Airways will proceed with a planned merger to form the world’s largest airline after making concessions to ensure more competitiveness in the US market.
The tie-up was first announced early this year (TTG Asia e-Daily, February 15, 2013), only to be blocked by a lawsuit filed by the US Justice Department on fears that the concentration of domestic routes in the hands of the two heavyweights would hurt consumers and result in less competition (TTG Asia e-Daily, August 15, 2013).
According to Reuters, the two airlines have agreed to give up 52 pairs of takeoff and landing slots at Washington DC’s Reagan National Airport, where the two collectively hold 69 per cent of slots. The concession reduces the airlines’ stake to 57 per cent.
US Airways and American Airlines will also forsake 17 pairs at New York’s LaGuardia Airport.
The news agency said that as part of the settlement, the US Justice Department would give selected airlines the chance to purchase the slots.
