breaking news

'Pops, don't worry ... I'm doing the right thing' | Ex-Marine killed in Syria kept his mission secret from family

European watchdog approves US Airways, AMR merger


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.

“This represents one of the final milestones on our path to becoming the new American Airlines,” said AMR CEO Tom Horton.

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 trans-Atlantic 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.


Reader Comments ...


Next Up in Business

Shop smart for back-to-school: 10 helpful tips
Shop smart for back-to-school: 10 helpful tips

Wrapping up summer and transitioning back into school or college means it’s time for back-to-school shopping. Shopping for back-to-school items can be stressful and daunting if you don’t know what to look for or how to shop for the right deals. › RELATED: Find a suitable childcare service Although necessary, back-to-school...
Second norovirus case confirmed amid Chipotle food scare
Second norovirus case confirmed amid Chipotle food scare

A second person has tested positive for norovirus after visiting a Chipotle restaurant in Virginia earlier this month, health department officials said. The Loudoun County Health Department in Virginia says it also identified more than 135 who reported becoming ill after visiting a Chipotle restaurant in Sterling, Va., during July 13 through 16. The...
Unemployment rates rise in Clark, Champaign counties
Unemployment rates rise in Clark, Champaign counties

The unemployment rate in Clark and Champaign counties jumped higher in June but remained nearly flat from the same time one year ago, according to a monthly report from the Ohio Department of Job and Family Services. The unemployment rate in Clark County was 5.2 percent in June, up from 4.4 percent in May. But the report showed similar results to June...
Robot vacum cleaner could collect data about users’ homes
Robot vacum cleaner could collect data about users’ homes

The maker of the Roomba robotic vacuum, iRobot, could collect data about the floor plans of customers’ homes. iRobot’s chief executive, Colin Angle, told Reuters that iRobot may begin selling floor plans of customers homes with Google, Amazon or Apple. The information would be sold to tech companies in a push to create “smart homes&rdquo...
Michael Kors to purchase Jimmy Choo
Michael Kors to purchase Jimmy Choo

Fashion brand Michael Kors announced that it has reached an aggreement to acquire to footwear and accessories brand Jimmy Choo for $1.3 billion. The transaction has been approved by the boards of directors of both Michael Kors and Jimmy Choo, according to a company statement. Jimmy Choo has approximately 150 company-operated retail stores, 560 multi-brand...
More Stories