American-US Airways Merger Ruled Not “Anticompetitive”

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American Airlines

An effort by consumers and travel agents to stop the merger of American Airlines, which is owned by parent company AMR Corp. (AAMRQ.PK), and US Airways Group Inc. (NYSE:LCC) came to an end on Friday when a federal judge rejected a bid to block the deal, Reuters reports.

The merger between AMR and US Airways is set to create the world’s largest carrier, which is the main reason that consumers and travel agents had sought to block the merger altogether. The fear is that the merger will negatively affect competition leading to increased prices, diminished service, and increasingly crowded airplanes.

The federal judge’s decisions comes a month after the resolution of antitrust objections from the U.S. Department of Justice. Under the terms of that settlement, the airlines were forced to give up landing slots and gates at several airports, including New York and Washington, D.C., before earning approval from U.S. Bankruptcy Judge Sean Lane.

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