American Airlines gets go ahead to create world’s largest carrier
American Airlines has been given the go-ahead to merge with US Airways by European regulators after promising to give up slots at Heathrow and Philadelphia airports.
The European Union gave the $11 billion deal its seal of approval on condition that the airlines release one daily slot pair at Heathrow to allow a new entrant on the London to Philadelphia route.
The EU antitrust authority said the airlines would also sign special feed traffic agreements with a new competitor on the route, which will be dominated by American and its oneworld partner British Airways after the merger.
On all other routes affected by the merger there remains competition from rival carriers, including Virgin, Delta and United, said the EU.
AA’s merger and restructuring plan will create the world’s biggest airline but it must still be approved by a US federal judge before its parent AMR can emerge from bankruptcy. A hearing is expected on August 15.
Also, the US Department of Justice is still reviewing the deal amid concerns that it could lead to reduced competition and higher fares.
Linsey McNeill
Editor Linsey McNeill has been writing about travel for more than three decades. Bylines include The Times, Telegraph, Observer, Guardian and Which? plus the South China Morning Post. She also shares insider tips on thetraveljournalist.co.uk
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