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Fri, Jun 24, 2005

Justice Department Okays US Airways-America West Merger

Marriage Won't Hurt Competition

The pending union between US Airways and America West passed another hurdle Thursday as the Justice Department ruled that merger won't hurt competing airlines.

The news wasn't unexpected, given that the two airlines are rather complimentary in their routing -- they generally don't duplicate services at the same airport. US Air flies mostly East Coast routes, while America West is generally prevalent on the West Coast.

That key step is probably the last major obstacle in the way of the marriage, clearing the way for creation of the nation's biggest low-cost carrier.

US Airways, of course, is still in bankruptcy court -- its second in as many years -- and all this must be approved by the federal judge in Northern Virginia. A competing bid for US Airways could also come in the mail and besides the bankruptcy court, the Air Transportation Stabilization Board, and US Air creditors must still sign off on the deal.

FMI: www.usairways.com, www.americawest.com

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