Airlines Agree to Divest Assets To Settle DOJ Merger Suit

In U.S. v. U.S. Airways Group Inc. et al., in order to settle the U.S. Department of Justice’s antitrust suit attempting to block the merger between U.S. Airways Group Inc. and American Airlines, the airlines have agreed to divest a number of departure gates and 138 takeoff and landing slots at seven key airports.  Under the proposed settlement agreement, in order to preserve competition after the tie-up between American Airlines and U.S. Airways, the airlines will divest assets at airports in Boston, Chicago, Dallas, Los Angeles, Miami, New York, and the District of Columbia to low cost carriers, such as Southwest Airlines Co., and JetBlue Airways Corp.  As part of the same deal, the two airlines entered into an agreement with the U.S. Department of Transportation to continue using their unspecified number of commuter slots at Reagan National Airport for their current purpose of promoting air travel to and from small and medium-sized cities.  Although both parties have signed off on the agreement, the deal still requires the approval of a District of Columbia federal judge.

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