The proposed merger between American Airlines and US Airways
took a major step forward today. The two companies agreed to an antitrust deal
with the Department of Justice on Tuesday. They now expect the merger to go
through by December.
The combined company agreed to give up 104 slots at Reagan
National Airport in Washington, D.C., and 34 at LaGuardia airport in New York.
The airline also gave up two gates and related support facilities at Boston
Logan International Airport, Chicago O'Hare International Airport, Dallas Love
Field, Los Angeles International Airport, and Miami International Airport.
Under terms of the settlement, the new American has agreed
to maintain its hub in Philadelphia for three years. It made similar agreements
regarding its hubs in Charlotte, N.C., New York (Kennedy), Los Angeles, Miami,
Chicago (O'Hare), and Phoenix.
The new company is still expected to generate more than $1
billion annually starting in 2015, the company said in a statement.
The combined company expects to operate 44 fewer daily
departures at Reagan and 12 fewer daily departures at LaGuardia. Whether these
changes will be enough to satisfy fliers wary of high fare prices due to
decreased competition remains to be seen.
Rep. Chaka Fattah released the following statement on the
deal:
“I applaud this morning’s decision by the Department of
Justice (DOJ) to allow the completion of the merger between American Airlines
and US Airways," he said. "The announced settlement will retain a hub
in Philadelphia—important for keeping and creating jobs in our city. When the
merger is completed we will see a stronger airline that will improve travel
options for Philadelphians, while increasing our region’s global
competitiveness through expanded international routes. After months of prolonged
negotiations, this settlement is good news for Philadelphia, and a good deal
for our national economy.”
Source: Philadelphia
Business Journal
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