Southwest Airlines buys slots given up by American Airlines

The merger of American Airlines and US Airways is paying off for Southwest Airlines.

To settle an antitrust lawsuit by the U.S. Department of Justice, American and US Airways agreed to give up dozens of landing and takeoff slots to ensure strong competition.

At New York’s LaGuardia Airport, Southwest Airlines is taking over a total of 22 takeoff and landing spots given up by American Airlines, the carrier announced Thursday.

“This is terrific news for low-fare customers who want greater access to New York City,” said Bob Jordan, Southwest’s executive vice president and chief commercial officer.

Southwest and its subsidiary, AirTran Airways, now operate 27 daily round-trip flights to and from LaGuardia. The acquired slots will allow the airlines to add six daily round trips starting in May.

The American and US Airways merger will create a behemoth that shuttles 140 million passengers around the world each year and employs about 90,000 full-time workers operating about 951 airplanes. The new airline would keep the name American Airlines, though US Airways’ chief executive would be in charge.

But to settle a lawsuit by the Justice Department, the two airlines agreed last month to give up 104 landing slots at Ronald Reagan Washington National Airport and 34 slots at New York’s LaGuardia Airport.

The Justice Department made it clear that the airlines must sell the slots to low-cost carriers to ensure strong competition and low prices.

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