American Airlines, US Airways Get EU Merger Approval

AMR Corporation, the parent company of American Airlines, Inc., and US Airways Group, Inc. have announced that they have gotten approval from the European Commission under the EC Merger Regulation for the mega merger that would make the airline one of the world’s largest.

The OK came with a price tag, however.  The post-merger American will be required to give up the rights for one daily round-trip flight from Philadelphia—a hub which will be controlled by the mega airline--at London's capacity controlled Heathrow airport.
U.S. authorities are still mulling the merger.  AMR’s reorganization—and exiting CEO Tom Horton’s platinum parachute of $19 million plus bennies—is to get a final approval from a U.S. Bankruptcy Judge in about two weeks.  The U.S. Justice Department has yet to approve the merger, a move that is seen as a done deal by almost every airline expert, and which is projected to happen in September.

Charles Leocha, one dissenting voice at recent Senate approval hearings for the merger told TravelPulse that “Horton enriching himself as consumers face higher airfares and fees and less competition is sickening. It is an example of where this merger benefits only the management of American Airlines and US Airways and leaves the American Public with less competition, higher prices, less airline service and more unemployment.”

“If this merger is approved, it will be a sad day for consumers. But we still have a chance. The deed is not done. It is the DOJ decision that is the most important.”

Source: Travel Pulse, http://www.travelpulse.com/american-airlines-us-airways-get-eu-merger-approval.html