KBTX | Bryan & College Station, TX | Aggieland News

Government Reaches Agreement to Allow Airline Merger

By: Associated Press
By: Associated Press

WASHINGTON (AP) - The CEO of US Airways calls it "very good news." Doug Parker is reacting to an agreement announced by the Justice Department that will allow US Airways and American Airlines to merge. Parker will be in charge at the new company.

The settlement still requires approval by a federal judge. It will require American and US Airways to give up some takeoff and landing rights in Washington and New York, and also to turn over gates at airports in Boston, Chicago, Los Angeles, Dallas and Miami to low-cost carriers, to offset the impact of the merger.

Attorney General Eric Holder says the agreement will ensure more competition on nonstop and connecting routes nationwide. The department says the agreement to give up slots and gates at airports is "groundbreaking."

The companies expect to complete the merger in December.

A half dozen states had joined the federal government's lawsuit aimed at blocking the merger, fearing the loss of flights and jobs at their airports.


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