American Airlines Group Inc. (AAL:US) sold take-off and landing rights at Reagan National Airport and LaGuardia Airport for more than $425 million as part of its settlement of a government antitrust lawsuit last year.
The U.S. Justice Department disclosed the terms in a court filing today in Washington defending the settlement after receiving public comments. The government said it isn’t proposing any modifications to the settlement.
“The competitive significance of the remedy is reflected in the value being paid for the divested Reagan National and LaGuardia slots -- over $425 million -- which is unprecedented in the airline industry and among the most substantial merger remedies in any industry,” the Justice Department said.
The settlement reached in November called for 104 slots at Reagan and 34 slots at LaGuardia to be sold along with gates at five airports. Slots were sold to Southwest Airlines Co. (LUV:US), Virgin America, JetBlue Airways Corp. (JBLU:US) A slot allows for one takeoff or landing, and a pair is needed for a roundtrip.
The agreement settled the U.S. lawsuit seeking to block American Airlines’ merger with US Airways Group Inc. The carriers completed the merger to create American Airlines Group.
The case is U.S. v. US Airways Group Inc., 13-01236, U.S. District Court (Washington).
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