American Airlines-US Airways merger is on as carriers reach a settlement with the DOJ

Dino D'Amore
By Dino D'Amore November 13, 2013 12:36

American Airlines-US Airways merger is on as carriers reach a settlement with the DOJ

The world is buzzing with the news that the US Department of Justice (DOJ) has reached a settlement with American Airlines and US Airways to enable the two airlines to merge. Stocks in American Airlines soared on the news.

The settlement requires the airlines to sell facilities at seven airports in order to allow low-cost airlines to increase their presence. American and US Airways will sell 104 slots at Washington’s Reagan National, 34 slots at New York’s LaGuardia, and rights to gates at Boston’s Logan, Chicago’s O’Hare, Dallas’ Love Field, Los Angeles and Miami airports.

“This agreement has the potential to shift the landscape of the airline industry,” said Attorney General Eric Holder. “By guaranteeing a bigger foothold for low-cost carriers at key US airports, this settlement ensures airline passengers will see more competition on nonstop and connecting routes throughout the country.”

The two airlines are thrilled with the deal. “We are pleased to have this lawsuit behind us and look forward to building the new American Airlines together,” said US Airways CEO Doug Parker.

The good news for employees is that the two CEOs have confirmed that the loss of slots and gates will not lead to job cuts.

Joseph Sitt, Chairman of Global Gateway Alliance, and Steve Sigmund, Executive Director of Global Gateway Alliance, said in a statement: “Today’s announcement of a settlement between U.S. Airways, American Airlines and the U.S. Justice Department is good news for New York area airports and passengers. This development ensures another major carrier will be in our region for a long time to come. We’ve already seen the benefits of airlines making NYC airports a hub, with billions of dollars of investment in new and upgraded terminals at JFK and Newark and expanded choices in routes and scheduling. Adding another airline to this mix should extend these benefits.”

The settlement still has to be approved by the US Bankruptcy court but the merger is now expected to be fully approved before the end of the year.

Dino D'Amore
By Dino D'Amore November 13, 2013 12:36
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