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AA-US Airways Merger May Change Airline Industry For The Better

AA and US Airways

AA and US AirwaysThe government has given the go-ahead for the merger between American Airlines and US Airways.

It will create the world?s biggest airline.

Attorney General Eric Holder proclaimed that Tuesday?s agreement between the airline giants has ?the potential to shift the landscape of the airline industry.?

Once the two airlines finalize their merger in mid-December, they?ll be forced to give up 34 coveted slots at LaGuardia Airport, CBS 2?s Jessica Schneider reported. Those slots will go to low-cost airlines known for slashing fares for consumers.

?These other competitors coming in and being forced to react to the marketplace, which results in a lower price point for consumers in order for them to compete,? aviation attorney Brian Alexander said.

Something to effect of ?this has the possibility to really bring airfares to low levels.?

The two airlines will also give up space in Washington D.C., Boston, Chicago, Dallas, Los Angeles and Miami.

The concessions come as a result of a government lawsuit against the two airlines, when US Air announced its $1.1 billion acquisition of American in August.

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Source CBS, http://newyork.cbslocal.com/2013/11/12/holder-aa-us-airways-merger-may-change-airline-industry-for-the-better/