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airindia787 · Member Joined: 18 Nov 2007 Posts: 770 Location: DAB & ZTF

AMR, US Airways Reach Settlement on Merger

AMR Corp. and US Airways Group Inc. agreed to concessions at key airports across the U.S. to settle the Justice Department's antitrust suit, ending a monthslong standoff and paving the way for a roughly $16 billion merger that will create the world's largest airline.

US Airways and AMR, parent of American Airlines, agreed to divest slots at Reagan National Airport near Washington that will reduce their combined daily departures there by about 15%, and to give up slots at La Guardia Airport in New York that will cut their service there by about 7%.

They also agreed to give up two gates at each major airport in Chicago, Los Angeles, Dallas, Boston and Miami. The airlines also agreed to retain virtually all of their hubs for at least three years and, for at least five years, maintain service to cities in six states that also joined the Justice Department's suit: Virginia, Michigan, Florida, Arizona, Philadelphia and Tennessee.

Despite the concessions, the airlines said the new American—as the combined carrier is to be called—is still expected to generate more than $1 billion in total annual cost savings and revenue improvements, the same amount they estimated before the deal.

AMR Chief Executive Tom Horton said the settlement enables the airlines to take the final steps to create the new American. "There is much more work ahead of us but we're energized by the challenge and look forward to competing vigorously," he said.

US Airways CEO Doug Parker, who will lead the new combined company, said, "We are pleased to have this lawsuit behind us and look forward to building the new American Airlines together."

In addition to the commitment to maintain service to cities in the six states that joined the Justice Department's suit, the airlines will pledge to the Transportation Department to continue preserve service at other small and medium sized cities, a person familiar with the matter said.

http://online.wsj.com/news/articles/SB10001424052702304644104579193804169829002?mod=WSJ_hps_LEFTTopStories
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Nimish · Posted: Wed Nov 13, 2013 7:53 am Post subject:

I will miss US Air from the *A, but wish them the best on their move to One world. With this move, One world will become incredibly strong in the US, with nothing *A can do to improve their presence (other than possibly bring B6 over based on the LH stake)..
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