The U.S. Justice Department announced Tuesday that it has reached an agreement that will allow American Airlines and U.S. Airways to merge, creating the world's largest airline.
The agreement requires American and U.S. Airways to give up takeoff and landing rights or slots at Reagan National and New York's LaGuardia Airport and gates at airports in Boston, Chicago, Los Angeles, Dallas and Miami to low-cost carriers to offset the impact of the merger.
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 have said their deal would increase competition by creating another big competitor to United Airlines and Delta Air Lines, both of which grew significantly through recent mergers.
U.S. Attorney General Eric Holder said the agreement would ensure more competition on nonstop and connecting routes throughout the country.
The agreement must still be approved by a federal judge in Washington. The companies expect to complete the merger in December.