E.U. said to clear U.S. Airways, American merger

Jul 29, 2013, 12:51 PM EDT
REUTERS/Larry Downing/Files

By Foo Yun Chee
BRUSSELS, July 29 (Reuters) - AMR Corp's American Airlines and US Airways will win EU approval for a $11 billion merger to become the world's largest carrier after agreeing to surrender slots on one route, three persons familiar with the matter said on Monday.
The airlines offered to give up slots at Heathrow and Philadelphia airports earlier this month after the European Commission raised competition concerns over the route.
"The deal is set to be approved," one source said.
The European Commission is scheduled to decide on the planned merger by August 6. Commission spokesman Ryan Heath declined to comment on the EU competition authority's decision.
U.S. regulators are also examining the tie-up, the fourth involving major U.S. carriers in the last six years which could help accelerate the recovery in the airline industry as the few remaining players get more power to raise fares.
(Reporting by Foo Yun Chee; Editing by Justyna Pawlak and David Cowell)