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American, US Airways Aim To Settle Merger Lawsuit

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DALLAS (CBSDFW.COM/AP) — Two people familiar with the discussions say Fort Worth-based American Airlines and US Airways will propose giving up some takeoff and landing rights at Washington’s Reagan National Airport in hopes of settling a government lawsuit blocking their merger.

The offer could be rejected, and the airlines are still planning on the case going to trial November 25, one of the people said Wednesday. Both spoke on condition of anonymity because the talks are private.

The U.S. Justice Department and six states sued in August to block the merger, which would create the world’s biggest airline. They say it would restrict competition and raise prices, and that combining the two airlines would make them too strong at Reagan National.

The airlines’ proposal was reported Wednesday by the Wall Street Journal on its website.

(©2013 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

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