A settlement has been reached between merging American Airlines and US Airways avoiding trials set to begin on Nov. 25 after American filed for bankruptcy over two years ago, USA Today reported.
The Justice Department announced on Tuesday the lawsuit was settled by requiring the combined airlines to give up key slots in airports across the country, according to USA Today.
With the settlement cleared, the merger between American and US Airways makes them the largest airline in the world, but will also increase low-cost airlines in airports around the country, according to USA Today.
The settlement states 52 slots at Reagan and 17 slot pairs at LaGuardia will be available, and two gates at Boston's Logan airport, O'Hare, Dallas Love Field, Los Angeles and Miami wil also become available, USA Today reported.
Attorney General Eric Holder said "this agreement has the potential to shift the landscape of the airline industry," adding that "by guaranteeing a bigger foothold for low-cost carriers at key U.S. airports, this settlement ensures airline passengers will see more competition on nonstop and connecting routes throughout the country," according to USA Today.
After the settlement is implemented, the merged company have 44 fewer departures at Reagan and 12 less at LaGuardia compared to the 290 daily flights out of Reagan or the 175 flights out of LaGuardia both companies currently operate, USA Today reported.
"This is very good news and we are grateful to all who have made it happen," Doug Parker, CEO of US Airways, and incoming CEO of the combined airline, told USA Today. "We are pleased to have this lawsuit behind us and look forward to building the new American Airlines together."
Tom Horton, the current CEO of American told USA Today that "this is an important day for our customers, our people and our financial stakeholders, this agreement allows us to take the final steps in creating the new American Airlines."
The merger is expected to be finalized in December 2013, but the completion depends on the approval of the settlement by the U.S. Bankruptcy Court, according to USA Today.
