US Airways And American Airlines Merger Approved By European Union Commission

The European Union Commission has approved the proposed merger of Tempe-based US Airways with the parent of American Airlines, AMR Corporation, but it will cost the new American one slot at London 's Heathrow airport. It will have to take steps to foster competition on its London to Philadelphia route.

The merger and restructuring plan must still be approved by a United States federal judge before AMR can emerge from bankruptcy, and the U.S. Department of Justice is still reviewing the deal amid complaints it could lead to reduced competition and higher fares.

Commission Vice President for competition policy Joaquin Almunia said in a statement the Philadelphia route would have been monopolized without concessions agreed to provisionally by the two airlines. Investigators were satisfied there would still be strong competition on other transatlantic routes affected by the merger.