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DOJ Settles with American/USAir; Merger Proceeds (Slate)
The Department of Justice (DOJ) has reached a settlement that will allow the merger of American Airlines and US Airways. The airlines will be selling landing slots at Washington, D.C.’s Reagan National Airport and New York’s LaGuardia Airport. Outside beneficiaries of this deal appear to be JetBlue and Southwest, who are the likely purchasers of the landing slots. However, customers are likely to see higher airfares, and Delta Airlines faces increased competition in an already difficult marketspace.
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