Airline merger cleared for takeoff

The U.S. government has approved a merger between American Airlines and US Airways. CNN's Richard Quest explains.

Now US Airways and American Airlines are free to merge after they reached a settlement with the US justice department, in August, the government, US government that is, filed an anti-trust suit against the airlines, it said the merger would restrict competition and drive up prices for consumers under hundreds of roofs. AMR and US Airways, but the two airlines involved, we’re determined to see this through?

Now an agreement has been reached with the conditions the airlines are required to sell 104 slots at Washington’s Regan Airport, National Airport as it used to be called to those less owned many. Those slots will go to low cost carriers. If they hadn’t got rid of the slots at DCA, the airlines would have controlled 69% of take-off and landing slots at this crucial airport. Man, if you’ll be familiar with that left turn, as you’re about, it goes the right turn, now with everyone as you go out to land, and you go over the monuments.

Other divestures required by the US government 34 slots at New York’s La Guardia, rights and gates at Boston Logan, Chicago’s O’Hare, Dallas Love Field, LAX, Los Angeles International and MIA Miami Airport. All of which the two carriers have to either give up slots, gates or rights.

Now Tom Holden, the president and chief executive of American said in this statement, this agreement allows us to take the final steps in creating the new American Airlines, and he continued, there’s much more work ahead of us, but we’re energized by the challenge.