AA, US Airways Merger Leaps another Hurdle

One more hurdle has been cleared by American Airlines and US Airways on their mission to merge.

USA Today is reporting that Reuters said sources “familiar with the matter” claim that European Union regulators are set to sign off on the merger in a deal that entailed the carriers giving up coveted Heathrow slots used for flights to US Airways’ Philadelphia hub. Heathrow slots are widely considered the cash cow slots of the industry.

EU officials have until August 6 to give a final ruling on the merger, which is seen by industry experts as an easy win both with the EU and with the U.S. Department of Justice. Consumer advocates like Charlie Leocha, director of the Consumer Travel Alliance, have said that “competitiveness will be clobbered” when “two of the worst U.S. airlines for customer service” merge. Leocha made the statements at the Senate Hearing on Airline Industry Consolidation on July 19.

“Prices will go up and effective competition will go down,” he said.

Source: Travel Pulse, http://www.travelpulse.com/aa-us-airways-merger-leaps-another-hurdle.html