AA settlement reached

[Ed W]

AA/USAir reached an agreement with DOJ that will allow the merger to proceed. Details are not available yet but an annoucement is expected shortly

[Conan71]

AA/USAir reached an agreement with DOJ that will allow the merger to proceed. Details are not available yet but an annoucement is expected shortly

I wonder how much that agreement ended up co$ting AA/USAir?  You know the government got some greenmail out of it.

[Gaspar]

It will ultimately be easier on the bankruptcy courts.

[dbacksfan 2.0]

I wonder how much that agreement ended up co$ting AA/USAir?  You know the government got some greenmail out of it.

Not "greenmail" but a lot of changes:

The deal requires American and US Airways to divest space at seven key airports, including Reagan. Without the divestiture, the new American airline would have controlled 69 percent of the takeoff and landing slots in DC.

The government says opening airport space will allow low-cost carriers to enter and expand service. This, say the trust-busters at Justice, happened in 2010 when United and Continental were forced to give up slots as part of their merger.

The intent may be to open things up to low-cost carriers, but Delta, one of the legacy big boys, said it "looks forward" to acquiring some of the gates divested by American-US Airways, especially at Reagan.

In a letter to American and US Airways employees, CEOs Tom Horton and Doug Parker call the agreement "great news." Despite losing flights at Reagan, they say a separate agreement with the Department of Transportation assures "much of the service" from DC to small and medium-size markets will continue.

The combined airline will offer 12 fewer daily departures from LaGuardia and 44 fewer from Reagan, including some non-stops. Those routes haven't yet been chosen, the CEOS said. We hope Phoenix will not be among them.

The new airline will be required to maintain a hub in Phoenix and other cities for three years, "consistent with historical operations."

When the deal's done, Tempe will lose US Airways as the new American makes Dallas/Fort Worth its home.

http://www.azcentral.com/opinions/articles/20131112us-airways-american-merger-could-stiff-phoenix.html