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Anti-trust deal reached in major airline merger

Earlier this year, a merger between American Airlines and US Airways was announced. The announcement was big news in a lot of ways -- but none more so than the fact that the newly-formed, post-merger company would be the largest airline in the world. The deal was reportedly well into the billions of dollars, and billions more are sure to change hands in the coming years as a result of the merger.

However, soon after the merger was announced, the Department of Justice raised concerns over the deal. The government argued that the merger would create a monopoly on airline slots at certain airports, thus violating anti-trust laws.

Recently, the DOJ's complaint was settled, meaning the merger will go through as expected. Part of the deal means that the American-US airline company will divest a number of their slots at a number of U.S. airports, most prominently in Washington D.C. where it was expected that the new company would hold every slot.

When two businesses merge, or when one buys another business, there are a lot of logistical and legal hurdles that need to be cleared. As you can see in this story, anti-trust regulations are one of those hurdles. But that is not a concern for most mergers. The companies involved want to make sure they are compliant with the rules and regulations that apply to them. As exciting as the possibilities and prospects may be of your new company, don't lose sight of the work that must be done to make the deal official.

Source: FOX Business, "AMR US Air Settle Anti-Trust Suit Over Merger," Jennifer Booton, Nov. 12, 2013

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