State of Texas Reaches Agreement with American Airlines and US Airways on Proposed Merger

DFW International Airport – Texas Attorney General Greg Abbott today announced that a settlement agreement has been successfully negotiated with American Airlines and US Airways concerning the proposed merger of the two airlines. The settlement resolves the State’s objections by American Airlines agreeing to maintain daily service to rural airports across the State of Texas. Additionally, the airlines entered into a binding agreement to maintain the merged company’s headquarters in the DFW metropolitan area. The result is a settlement agreement that serves the best interests of the State of Texas, continues daily air service to 22 airports across the state, and preserves thousands of jobs across the state.

Thomas Horton, Chairman, President and Chief Executive Officer of American Airlines, and Doug Parker, Chairman and CEO of US Airways, with a model of the new American Airlines livery during the merger announcement at Dallas/Fort Worth International Airport on Feb. 14, 2013.

Attorney General Abbott issued the following statement regarding today’s settlement:

“From the beginning, our focus has been on maintaining service to rural airports in Texas and protecting Texas jobs. Today’s agreement ensures that thousands of jobs will remain in Texas and that Texans traveling by air – especially those who fly in and out of rural cities across the state, including members of the military – will continue to benefit from daily flight service. The settlement secures common-sense concessions that are in the best interests of our great State.”

Attorney General Abbott added: “The settlement is good for American Airlines’ customers, the communities it serves and its employees. Our negotiations confirmed that the airline will preserve competition in the marketplace, maintain important routes in Texas and protect jobs.”

The State’s legal action, announced in August, was prompted by concerns about the potential for reduced airline service to several of Texas’ smaller airports. One particularly large group of travelers who depend on airline service to rural airports across the State are members of the armed services, who are served almost exclusively by American Eagle flights to and from Killeen, which is near Fort Hood; San Angelo, which is near Goodfellow Air Force Base; and Abilene, which is near Dyess Air Force Base. Today’s agreement ensures that 22 airports across Texas – including more than a dozen smaller airports in rural Texas – will continue to offer daily departures and arrivals.

In addition to ensuring daily service to airports across Texas, the agreement also guarantees that Dallas/Fort Worth International Airport will remain a “hub” and that, if the airlines merge, the headquarters will be located in Texas, in the DFW metropolitan area. This provides much greater assurance to Texas because it solidifies into a legally-enforceable agreement what was previously merely a stated intention to keep the headquarters in the DFW area. Those concerns are now put to rest and we’re proud that we now have a legal document that guarantees that the new American Airlines will maintain its headquarters in the DFW area.

Texas airports protected by the agreement include: