AMSTERDAM (AP) – European authorities have cleared US Airways Group Inc.’s proposed merger with American Airlines’ parent company, AMR Corp. _ on the condition that they give up one slot at London’s Heathrow airport and take steps to foster competition on the London-Philadelphia route.
The merger and restructuring plan, which would create the world’s biggest airline, must still be approved by a U.S. federal judge before AMR can emerge from bankruptcy, with a hearing expected Aug. 15.
Meanwhile, the U.S. Department of Justice is still reviewing the deal amid complaints that it could lead to reduced competition and higher fares in the U.S.
Joaquin Almunia, the top competition official at the European Commission, the EU’s executive branch, said in a statement that the Philadelphia route would have been monopolized without concessions agreed to provisionally by the two airlines.
“On all other transatlantic routes affected by the merger the combined entity will continue to face competition from other strong competitors,” including groups led by Delta, United, and Virgin, he said.
European approval for the deal has long been expected, but in the U.S. the situation may be more complicated, despite approval for the deal last week by US Airways shareholders.
In addition to the Justice Department, a number of states have asked for insight into the deal’s details, presumably to ensure that hubs and routes touching their regional interests are being preserved.
The companies have said they expect to close the deal by the end of September.
(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)
- The Pac-12 football season nears kickoff
- Tips to get ready for a pain-free golf season
- Protect your family with these 7 home security features
- How to train like an Olympic swimmer
- 2016 Olympics: A guide to must-see TV events
- The bride's guide to feeling your best on your wedding day
- Deciding when you need knee surgery
- Celebrating Fourth of July is much cooler in these AZ towns
- Top ten road trip bathrooms in America
- Six things causing a pain in your neck
- 5 things to make your summer move easier
- Three elements of a strong timeshare exit guarantee
- Stretches and exercises for carpal tunnel syndrome
- The best Major League ballparks have their own personality
- Comparing the best regular seasons: The '96 Bulls and '16 Warriors
- 3 Arizona road trips and the vehicles to get you there
- Colon cancer is preventable. Check these signs and symptoms to stay healthy.
- 6 of the biggest skin cancer myths
- Affordable small home makeover ideas
- Locals helping locals: 6 success stories you need to know about
- Sunscreen facts that could save your life
- 6 energy saving hacks for your home
- 5 tips for choosing a company to end your timeshare
- Overlooked water tips to save you money
- 5 of the most adored gentlemen in professional sports today
- The real danger of sitting at your desk
- Most surprising NBA playoff performances of the last 40 years
- 11 classic baseball movies you must see again
- Finally getting rid of fat: 3 methods that actually work
- 4 reasons cancer survivors should focus on food