The European Commission has approved the proposed merger between US Airways and AMR Corporation despite concerns of monopolisation of the London-Philadelphia route.
AMR Corporation, a holding company whose main subsidiary is American Airlines, has recently agreed to merge with US Airways.
The proposal raised concerns over the monopolisation of the London - Philadelphia route as both companies are involved in operating the direct flights via their partnerships with the British Airways and Iberia. These carriers are the only offering direct flights on the route.
European Commission has now approved the merger with the condition the companies will release one of their daily slots at the London Heathrow airport to their competitors.
"The Commission could clear this transaction in the first phase given the commitments offered by the parties which address the competition concern we identified on the London-Philadelphia route,” said the Commission’s Vice President in charge of competition policy Joaquín Almunia. “The commitments include a corresponding slot at London Heathrow as well as far-reaching feeder arrangements to induce entry by a new competitor on the route. We are therefore satisfied that the competitive dynamics will be maintained so as to ensure choice and quality of air services for passengers on this route," he explained.