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Justice Department To Allow Merger Of US Airways And American Airlines

File photo. (credit: Kevork Djansezian/Getty Images)

File photo. (credit: Kevork Djansezian/Getty Images)

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WASHINGTON (CBS/AP) — The Justice Department says it has reached an agreement to allow the merger of US Airways and American Airlines.

The agreement requires the airlines to scale back the size of the merger at key airports in Washington and other big cities.

In August, the government sued to block the merger, saying it would restrict competition and drive up prices for consumers on hundreds of routes around the country.

The airlines had said their deal would increase competition by creating another big competitor to United Airlines and Delta Air Lines, which grew through recent mergers.

Philadelphia Mayor Michael Nutter released a statement regarding the settlement among the Department of Justice:

“I applaud Attorney General Holder, Attorney General Kane and the management of US Airways and American Airlines for reaching a settlement that protects the interests of Pennsylvanians and allows the merger to advance. I have long believed that combining US Airways and American Airlines would benefit Philadelphia, Southeastern Pennsylvania and the entire tri-state region. As six other mayors and I noted in a letter to Attorney General Holder in late October, the merger of the airlines creates a better network than either carrier could build on its own. This will bring more businesses and international travelers and additional service to the region. With Philadelphia as a proposed hub for the new airline, I look forward to seeing growth in air service, employment and investment at Philadelphia International Airport as a result of the merger.”

(TM and © Copyright 2013 CBS Radio Inc. and its relevant subsidiaries. CBS RADIO and EYE Logo TM and Copyright 2013 CBS Broadcasting Inc. Used under license. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed. The Associated Press contributed to this report.)