US Airways and American Airlines Announce DOJ Settlement
Ariana Arghandewal November 12, 2013
US Airways and American Airlines have reportedly reached a settlement with the Department of Justice over the proposed merger of the two airlines. This news comes on the heels of a November 4 statement made by Attorney General Eric Holder, who insisted on concessions in takeoff/landing slots at Reagan (DCA) before any settlement could be reached.
Part of the deal involves the two airlines selling takeoff and landing slots at Reagan Washington National Airport (DCA), La Guardia (LGA), Chicago O’Hare (ORD), Los Angeles (LAX), Boston Logan (BOS), Dallas Love Field (DAL), and Miami International (MIA). Overall, the two airlines will give up 52 slot pairs at DCA, 17 at LGA, and two at each of the remaining airports listed above.
Despite these concessions resulting in 56 fewer departures out of DCA and LGA alone, the airlines insist employment and projected income will not be affected.
Once the settlement is approved by a judge, the trial will be bypassed and the merger can proceed. The merger is expected to complete by December 2013.
Smells of kick back. Somebody wanted those slots.
Well, color me surprised. This doesn't seem to be much more of a concession than AA/US initially offered to the DOJ. I don't see how the requirements at non slot-restricted airports will pass the test of time, as I'm sure that the new AA will gradually try to grow back at those airports.