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DoJ Approves American And US Airways Merger

|Includes: American Airlines Group (AAL)

Originally published at

Filing in Focus: US Airways 8-K, November 12, 2013

The United States Department of Justice has approved the merger of US Airways Group, Inc. (LCC) with AMR Corporation. Analysts and industry experts have mixed feelings on the approval, with many believing the deal will create more competition in busy markets like New York while also opening up opportunities for lower-cost carriers. Those on the other side see this is a move that removes a fourth major competitor and reduces the field to the three major airlines, US Airways/American, Delta, and United, and that this reduction will lead to increased fares. The settlement still has to receive approvals from a few courts but the Justice Department's clearance of the deal was the primary hurdle. Once the merger is completed, which the airlines expect to be in December, the airline will operate 44 less departures from Reagan National and 12 fewer departures from La Guardia.

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