Boston, MA, 11/14/2013 (wallstreetpr) – Recently, the management of US Airways Group Inc (NYSE:LLC) and American Airlines are in talks for a merger. In other words, the US Airways Group Inc and American Airlines are planning to merge together and form a single airline. But it is not at all clear that the fares would be increased or not.
According to the information made available from the Justice Department, the settlement has reached the company and it is being analyzed. It is also being believed that with this deal the customers would be able to get lower fares and also greater access to the low cost carriers such as South West Airlines and Jet Blue Airways. This is also being done in order to increase the access to the limited number of landing and take – off port at Reagan National Airport in Washington and New York’s La Guardia.
According to the information made available from Fitch Ratings, the settlement agreement between the Department of Justice and AMR Corporation and US Airways Group Inc is going to be a positive for both the companies and also for the entire industry.
The successful merger of AMR Corporation and US Airways Group Inc would continue the trend of improving the U.S. airline credit profiles which is being done in the last five years. This stronger carrier has also managed to benefit from the disciplined capacity management practices. The concessions have also included in the DOJ settlement which are viewed as a relatively minor considering.
As a part of the settlement, the deal which is being done between both the companies would divest 52 slot pairs at the Washington Reagan Airport where US Airways Group Inc holds around 55% of market share. The slot pairs refer to the right to land or take – off at a given point of time.
