Feds approve merger for American-USAirways; Bondi praises compromise
UPDATE: The Justice Department has reached an agreement to allow American Airlines and US Airways to merge, creating the world's biggest airline.
The agreement requires the airlines to scale back the size of the merger at Washington's Reagan National Airport and in other big cities, including Miami.
In August, the government sued to block the merger, saying it would restrict competition and drive up prices for consumers on hundreds of routes around the country. Florida Attorney General Pam Bondi and attorneys general from five other states joined to stop the sale. On Nov. 1, Bondi met with American Airlines CEO Tom Horton and later described the meeting as productive.
On Tuesday, Bondi said she was "thrilled" with the agreement which requires the airlines to divest slots at Reagan National in Washington D.C., LaGuardia in New York City as well as gates at Boston, Chicago, Dallas-Love Field, Los Angeles International and Miami.
Slots are required for take offs and landings at Reagan National and LaGuardia because of congestion and the divestitures will enable new carriers to enter the Washington, D.C. and New York markets. The same will happen as the result of gate divestitures, she said in a statement.
“I am thrilled that we have reached an agreement that will not only keep jobs in Florida, but also will lead to additional jobs in our great state,” Bondi said. “The agreement also ensures that air travelers have ample options before them."
The airlines have said their deal would increase competition by creating another big competitor to United Airlines and Delta Air Lines, which grew through recent mergers.
The settlement reached Tuesday would require approval by a federal judge in Washington. It would require American and US Airways to give up takeoff and landing rights or slots at Reagan National and New York's LaGuardia Airport and gates at airports in Boston, Chicago, Los Angeles, Dallas and Miami to low-cost carriers to offset the impact of the merger. More here.
The Associated Press contributed to this report.