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.

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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.

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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.” 

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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

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