Settlement reached in Tempe-based US Airways, American merger - East Valley Tribune: Tempe

Settlement reached in Tempe-based US Airways, American merger

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Posted: Tuesday, November 12, 2013 12:15 pm

The groups involved in the merger between Tempe-based US Airways and American Airlines have agreed to a settlement that includes continued flights out of Phoenix for at least three years.

Arizona Attorney General Tom Horne announced on Nov. 12 the parties involved — the U.S. Department of Justice, the airlines, the District of Columbia and six states, including Arizona — have come to an agreement to allow the merger to continue.

The settlement requires the airlines to continue daily service out of Phoenix for the next three years — the airlines also have to continue service to airports it served prior to the merger announcement in Phoenix, Yuma, Tucson and Flagstaff — and to eliminate slots at other airports to open up competition for low cost carriers.

“Competition in the airline industry has been preserved by this settlement,” said Attorney General Tom Horne in a press release. “The required divestitures of key assets at airports across the country will spur competition by allowing other airlines, most notably low cost carriers, to enter and expand service to cities across the country.”

The settlement still requires court approval; if it is approved, the settlement would resolve the competitive concerns of the parties involved when they filed the suit in August.

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