Parent companies of merging carriers American Airlines and US Airways have agreed to divest several slots and gates at key U.S. airports to settle litigation challenging their combination from the U.S. Department of Justice (DOJ) and several state attorneys.
Fifty-two slot pairs (take off and landing times) at Washington Reagan National Airport and another 17 at New York LaGuardia Airport will be relinquished along with certain gates and related facilities, the airlines announced jointly Tuesday, in a statement.
The carriers also plan to divest two gates and support facilities at Miami International Airport, Boston Logan International Airport, Chicago O’Hare International Airport, Dallas Love Field and Los Angeles International Airport.
American is the top carrier at Miami International with more than 60 percent of passenger traffic and is among the top 10 airlines at Fort Lauderdale-Hollywood International Airport with 4.9 percent of passenger traffic in 2013 through September. It had roughly 6.62 percent of traffic at Palm Beach International for the 12 months ending September.
“I’m pleased that the Justice Department was able to reach an equitable outcome with American Airlines and US Airways, Miami-Dade County Mayor Carlos A. Gimenez said in a statement. “This settlement brings much-needed peace of mind to some 9,000 local employees with the potential to generate many new jobs following the merger.”
The divestitures will occur through a DOJ approved process following the completion of the merger, which is expected to be completed in December, the airlines said.
In a separate settlement agreement with several state Attorneys General including Florida’s, the combined new American has agreed to maintain its hubs in Miami, Charlotte, New York (Kennedy), Los Angeles, Chicago (O'Hare), Philadelphia, and Phoenix in keeping with historical operations for a period of three years.
For more details on the settlement, click here.
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