Merger of American Airlines and US Airways

The U.S Justice Department has approved the 11-billion merger of American Airlines and US Airways, and the merger makes create the largest airline around the world.


The U.S Justice Department refused to allow American Airlines and US Airways. It concerned that the merger would dominate the flights and lead to an increase of fares. But the Department dropped its opposition of the merger after the agreement: The two airlines would reduce the slots for low-cost carriers.

For American Airlines and US Airways, the merger gives more strength in the marketplace. Although two airlines accept the scaling deal, they still possess 57 percent of national flights in the airports; thus, unfortunately, it will reduce the airlines’ competition and lead to the increase of price of flight ticket. The consequence is absolutely disadvantageous for consumers, while it will create huge benefits for two airlines.

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