Washington : American Airlines and U.S. Airways have reached a deal with the government letting them form the world’s biggest airline. The Justice Department reached a settlement with American Airlines and US Airways that requires them to sell facilities at seven airports to complete their planned 11 billion dollars merger to create the world’s biggest carrier.
Under the deal the two airlines after merger can even open up more room at key U.S. airports for low-cost carriers.
According to CNN, the deal announced allows low-cost airlines to increase their presence at Boston Logan, Chicago’s O’Hare, Dallas Love Field, Los Angeles, Miami, New York LaGuardia and Washington National airports.
The Justice Department and attorneys general from several states and the District of Columbia sued in August seeking to block the merger.
They claimed that the merger would lead to higher prices and less service for consumers.
The agreement requires court approval as part of American’s bankruptcy restructuring. The carriers now expect to complete their merger in December.