Anti-trust world surprised by airlines deal

The proposed US Airways-American Airlines merger has cleared another hurdle despite considerable concern that the US Department of Justice would block the proposed US$11b deal.

Airlines merger to go ahead Brasilnut1

Experts in the area had expected that the plans might fall apart after the Justice Department challenged the plan in August. But just days before the case was due to get to court the parties have agreed a settlement in which the airlines drop 69 slots at airports in Washington and New York. This arrangement appears to have resolved concerns from the Justice Department that the deal would force customers to pay more for flights. 

Not clear

Talking of the Justice Department, Professor Carl Tobias of the University of Richmond, Virginia, an anti-trust specialist, told The FInancial Times: 'They seemed very concerned. It’s not clear to me that the settlement guarantees everything that they were talking about when they filed suit.' Source: The Financial Times

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