American Airlines, US Airways Group need to divest to get merger approval- source

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A source told Reuters that US regulators wanted American Airlines and the US Airways Group to divest their takeoff and landing slots in various airports all over the US. The divestments were given as a condition for the approval of a merger of both firms, the person familiar with the matter added.

According to the source, the airlines and the regulators were exploring the possibility of the carriers giving up their takeoff and landing slots. The airline slots are located at the Ronald Reagan National Airport in Washington, as well as in other key airports all over the US. The regulators cited more than a thousand city pairings where the merger of both airlines could reduce the number of flights or increase fares. As such, the antitrust authorities wanted more concessions from the two airlines, according to the source.

The trial for the proposed merger between American Airlines and US Airways was scheduled to begin on November 25. Both airlines wanted to be able to reach a settlement before the start of the trial, Reuters reported.

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American Airlines, US Airways Group

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