The US government has approved the new terms and conditions of the merger of American Airlines and US Airways, which will create the largest airline in the world, the Associated Press informed on Tuesday, November 12. It is expected that the contract will be approved by the Federal Court, then the airlines will be able to process the deal and close it in the first half of December. Under the agreement, the merged company will divest some slots at seven key US airports in order to avoid dominating.
American Airlines and US Airways announced the merger in February 2013. The deal should have been finished in September, but in August the United States Department of Justice (USDoJ) and the authorities of several US states filed a suit demanding to block the deal because it breaks the antitrust law. The trial was appointed for November 25, but the America Airlines and US Airways changed the conditions of the merger and the USDOJ withdrew the claim.
The new company, the formation of which should be finished in several years, is named American Airlines Group. Its market capitalization will be about $11bn. It’s planned that American Airlines Group will have 6.7 thousands flights per day for 336 destinations in 56 countries. The headquarters will be in Fort Worth, Texas.
