Texas drops opposition to airline merger

Posted: October 03, 2013

The Texas attorney general has withdrawn his opposition to the proposed merger of AMR Corp.'s American Airlines and US Airways Group.

Attorney General Greg Abbott announced Tuesday that he would support the merger of Fort Worth, Tex.-based American with US Airways, Philadelphia's dominant airline.

Under the agreement, the new American, as the combined carrier would be called, will provide daily flights to more than 20 Texas airports. Dallas-Fort Worth International Airport will remain a large hub and American will keep its headquarters in Texas.

Previously, Texas and five other states, including Pennsylvania, and the District of Columbia, joined a U.S. Justice Department lawsuit seeking to block the merger, on grounds that creating the world's largest airline would reduce competition and raise airfares.

"I'm pleased we were able to find common ground and gain the carefully considered support of the attorney general in our home state," said Tom Horton, AMR president and CEO. "Texas has long played a lead role in our company's history, and this agreement is assurance of our commitment to maintain and enhance the outstanding levels of service and connectivity that the new American will provide to the citizens of Texas."

"This merger will enhance job security and career opportunities for our combined Texas based employee base of nearly 25,000. The combined airline will fly more people and more goods to more places while providing more competition to benefit customers in the U.S. and abroad," Horton said.

US Airways CEO Doug Parker said, "We are grateful to have the support of Attorney General Abbott. In addition, the support for the merger from the employees of American Airlines and US Airways has been overwhelming. This combination makes sense for our customers, employees and the communities we serve."

lloyd@phillynews.com

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