American, US Air Reach Deal with DOJ and States

American Airlines and US Airways Group have reached a settlement with the U.S. Justice Department (DOJ) in an antitrust lawsuit that sought to block the companies’ proposed $17 billion merger, the Dallas Business Journal reports. Under the deal, the airlines will be able to merge but will sell 104 takeoff and landing slots at Reagan National Airport near Washington D.C., 34 slots at LaGuardia Airport in New York and slots at gates at Boston, Chicago, Dallas-Love Field and Los Angeles International. Key slots will be auctioned off to low-cost carriers, the DOJ reported. The airlines also settled a suit brought by Tennessee and five other states, Tennessee Attorney General Bob Cooper reports. Under those terms, the new airline will commit to serve the state’s major airports in Nashville, Memphis, Knoxville, Chattanooga and the Tri-Cities for five years.