U.S. Justice Department to settle lawsuit against American Airlines, US Air merger

The U.S. Justice Department filed a proposed settlement with American Airlines and US Airways that would end the lawsuit holding up the merger between the two airlines.

Assistant Attorney General Bill Baer talked about the proposed settlement in a conference call Tuesday. In his remarks, posted online at the Justice Department website, he says that the airlines will have to divest slots at seven airports, including Dallas Love Field.

They will divest 104 air carrier slots at Reagan National in Washinton, D.C., 34 slots at LaGuardia in New York, and 2 gates and ground facilities at each of Logan in Boston, O'Hare in Chicago, LAX in Los Angeles, Miami and Dallas Love Field, Baer said.

The lawsuit was filed because the Justice Department was concerned about reducing competition.

"This settlement addresses those concerns and opens up the marketplace as never before," Baer said. "It will disrupt today's cozy relationships among the incumbent legacy carriers and provide consumers with more choices and more competitive airfares."

In a prepared statement, DFW International Airport CEO Sean Donohue said he was pleased with the settlement announcement.

" Our anticipated position as the anchor hub for the world's largest airline positions DFW well for future air service growth, particularly to international markets.Today's announcement is a big step forward in assuring that DFW remains the driving economic force for our region and our state," the statement says.

To read Baer's complete remarks, to go www.justice.gov.