Accuracy in Media

WASHINGTON — U.S. Airways and American Airlines are in the stages of merging their airlines, but the European Union (EU) is objecting to some of the terms to their merger.

airlines mergerReuters reports that the merging airlines are offering an olive branch to blunt the effects of a European investigation.

The EU is investigating the merger in the context of antitrust laws because the $11 billion merger will create the world’s largest airline, and the two airlines are willing to concede some things to the European investigators. The European Commission, the EU’s top ruling body, said it will decide whether to accept the deal by the beginning of August.

Some of the typical concessions is conceding airport slots to competitors and open up their frequent-flyer programs to rivals and their flyers to ease the concerns of antitrust regulators.

Both European and American regulators are taking a closer look at the deal.





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