US: DOJ’s Hesse predicts losers in US, AMR merger

As part of concessions agreed upon by US Airways and American Airlines in their settlement with the Department of Justice, the companies agreed to divest takeoff and landing slots in various US airports. But those slots are unlikely to go to major rivals Delta Air Lines and United Continental Holdings, according to one DOJ lawyer.

According to reports, DOJ Senior Official Renata Hesse told reporters that the major airlines would be unlikely to meet the requirements to acquire the 104 slots American and US Airways will be required to sell off in order to finalize their merger, which will create the world’s largest airline.

Following the settlement announcement, Delta stated that regulators should consider “all airlines” to acquire the divestitures. But US Assistant Attorney General Bill Baer of the DOJ noted that budget airlines were a major factor in the settlement plans when authorities announced the settlement, earlier last week.

Full Content: Businessweek

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