US Airways Trades Resumed After DoJ Deal Announced

0
US Airways Trades Resumed After DoJ Deal Announced

US Airways Group Inc (NYSE:LCC) has reached a preliminary settlement agreement with the Department of Justice in connection with a lawsuit over the company’s proposed merger with American Airlines. That’s according to Michael J. De La Merced of The New York Times, who cites a court document unveiled today.

Play Quizzes 4

Trading on shares of US Airways was halted briefly this morning so that the news could be announced.

How A Weakening PE Market Serves As Another Sign Of A Weakening Economy

InvestAmid the turmoil in the public markets and the staggering macroeconomic environment, it should come as no surprise that the private markets are also struggling. In fact, there are some important links between private equity and the current economic environment. A closer look at PE reveals that the industry often serves as a leading indicator Read More

American, US Airways to sell airport slots

Under the terms of the proposed deal, US Airways Group Inc (NYSE:LCC) and American Airlines would sell a number of their airport slots, including 104 slots at Regan National Airport in Washington and 34 slots at New York City’s La Guardia Airport. The airlines will also sell some of its assets at five additional airports, including Chicago’s O’Hare Airport, Boston Logan International Airport and Los Angeles International Airport. The Federal District Court still must approve these terms before the deal becomes final.

The lawsuit had been scheduled to go to trial this month, and it was the one major barrier standing between the two airlines and their proposed merger. U.S. Attorney General Eric Holder said earlier this month that any agreement they would reach with the airlines would require trade-offs in airport slots, especially Reagan National where together, the two airlines hold approximately two-thirds of the slots. Both airlines are hoping for the merger because it would give American Airlines’ parent a company a boost and lift it out of bankruptcy.

Airline stocks react to US Airways deal

After the preliminary settlement was announced, shares of airline companies started reacting. Shares of US Airways Group Inc (NYSE:LCC) declined 1%, while shares of American Airlines’ parent company, AMR Corporation (OTCMKTS:AAMRQ), surged. Southwest Airlines Co. (NYSE:LUV) shares rose about 3%, while JetBlue Airways Corporation (NASDAQ:JBLU) increased 7%.

Once the airport slots held by US Airways and American are put up for sale, these other airlines will be vying for those valuable slots and could see a significant increase in traffic, particularly through the highly coveted slots at Reagan National Airport.

Updated on

Michelle Jones is editor-in-chief for ValueWalk.com and has been with the site since 2012. Previously, she was a television news producer for eight years. She produced the morning news programs for the NBC affiliates in Evansville, Indiana and Huntsville, Alabama and spent a short time at the CBS affiliate in Huntsville. She has experience as a writer and public relations expert for a wide variety of businesses. Email her at Mjones@wordpress-785388-2679526.cloudwaysapps.com.
Previous article Hedge Fund AUM Increases $100 Billion Despite Underperformance
Next article Liberty Global Negotiating Deal For Intel’s Online Pay TV Service

No posts to display