Finally US Airways Group Inc (NYSE:LCC) and AMR Corporation (OTCMKTS:AAMRQ) have a clear way to the future, according to report the US Justice Department on Tuesday has allow US Airways Group Inc. and AMR Corp.’s to join together to become the world’s largest airline.
The antitrust settlement between the two firms requires to sell terminal gates, landing slots, and many other facilities both of them have seven U.S. airports to make sure they don’t overlook regional markets, as well as to seek final approval from federal judge.
Eric Holder, who is Attorney General of the case, has said this deal has the possibility to move the scenario of the airline sector. By assuring better foothold for low-cost carriers at main airports of the country, this decision make sure the firm passengers will observe additional competition on connecting and nonstop routes all over the US.
According to the conditions of the deal, at Reagan National close to Washington, D.C., both of the firms must sell 104 of their slots, due to which their daily flights will decreased out of the airport by approximately 15%. While the main advantage in the deal will be to JetBlue Airways, which has previously leases numerous of these slot.
The deal terms also suggest that their 34 slots will be purchased by Southwest Airlines Co. which is located In New York at LaGuardia Airport. While after their merger their brand name will be AMR’s American Airlines, and this airline will also settled to sell their ground and gates facilities at Chicago O’Hare, Boston Logan, Dallas Love Field, Miami International and Los Angeles International. US Airways Group Inc (NYSE:LCC) share increased 1.07% to $23.52 in last trading session.
The $17.2 billion deal between the two US airlines are pending for months, as the deal was previously opposed by District of Columbia and six state attorneys-general, as they claim that this merger will result in too much pricing power and concentrate too many routes due to lack of competition. So they filed an antitrust lawsuit, in order to block the AMR-US Airways merger. AMR Corporation (OTCMKTS:AAMRQ) share up 26.05% to $12.00 in last trading session.