EU Clears American, US Airways Merger
American Airlines’ parent AMR Corporation and US Airways, which plan to merge later this year, said that the European Commission has approved their planned merger. The approval was conditional “upon the release of one daily slot pair at London Heathrow and of other commitments in order to induce entry on the London-Philadelphia route” as well as “other commitments in order to induce entry on the London-Philadelphia route,” the antitrust regulator said in a statement.
The Commission concluded that the merger would not raise competition concerns.
The approval by the European Commission is one of the final milestones that the airlines faced since announcing plans to merge on February 14 of this year.
Last week, American’s creditors and shareholders voted overwhelmingly in favor of the merger. The two still face a few hurdles, including confirmation by the U.S. Bankruptcy Court for the Southern District of New York. The merger is planned for the third quarter of 2013.
The new American Airlines, which will remain in the oneworld alliance, will be based in Fort Worth where American is currently headquartered. It will have 94,000 employees, 950 planes, 6,500 daily flights, eight major hubs, and yearly revenue of roughly $39 billion. It will be the leader in several markets including the East Coast, the Southwest, and South America, although it will continue to be overshadowed by Delta and United in Europe and Asia.
(Photo: Accura Media Group)