Texas Settles With American Airlines and US Airways on Proposed Merger

american airlinesTexas Attorney General Greg Abbott announced that a settlement agreement has been negotiated with American Airlines and US Airways on the proposed merger of the two airlines. The Department of Justice (DOJ) brought the anti-trust suit this summer with the support of several states, including Texas. A trial date was set for November 25.

RELATED STORY: IATA CEO Defends Distribution Policy and AA/US Air Merger

The settlement resolves the State’s objections by American Airlines agreeing to maintain daily service to rural airports across the State of Texas, the AG said. Additionally, the airlines entered into a binding agreement to maintain the merged company’s headquarters in the DFW metropolitan area.


Like this story? Subscribe to Daily News & Deals!

Featuring breaking news on the latest product launches, deals, sales promotions, and executive appointments. Be sure to sign-up for this free industry daily newsletter.

Attorney General Abbott issued the following statement regarding today’s settlement: “From the beginning, our focus has been on maintaining service to rural airports in Texas and protecting Texas jobs. Today’s agreement ensures that thousands of jobs will remain in Texas and that Texans traveling by air – especially those who fly in and out of rural cities across the state, including members of the military – will continue to benefit from daily flight service. The settlement secures common-sense concessions that are in the best interests of our great State.” 

RELATED STORY: Federal Judge Expedites American Airlines - US Airways Merger Trial

Attorney General Abbott added: “The settlement is good for American Airlines’ customers, the communities it serves and its employees. Our negotiations confirmed that the airline will preserve competition in the marketplace, maintain important routes in Texas and protect jobs.” 

The State’s legal action was announced in August.

Visit www.DOJ.gov

Suggested Articles:

Viking.TV is a digital platform designed to provide cultural content and livestreaming video experiences from around the world. Learn more here.

Passenger traffic has decreased 35.8 percent in Mexico, 35.9 percent in Puerto Rico and 36.2 percent in Colombia, reflecting the impact of COVID-19.

A total of 30 deals worth $458.86 million were unveiled in February 2020, compared to the 12-month average of 37 deals. Read more.