US Airways and AMR Agree, But Will Regulators?

The merger of AMR’s American Airlines and US Airways (NYSE:LCC) has passed one more major hurdle, as both airlines have agreed to the terms of a merger. But, there are still a few things that could stand in the way of the proposed deal.

The boards of both companies approved the merger, which would give 28 percent of ownership to US Airways shareholders, and the remaining 72 percent would be split between American Airlines’ shareholders, creditors, labor unions, and employees.

The deal is valued at $11 billion and stands to create a larger airline than either Delta (NYSE:DAL) or United Continental (NYSE:UAL) — becoming the largest airline in the world by passenger traffic. The merged airline would still be known as American Airlines and could be expected to make as much as $38.69 billion in annual revenue, which would top United Continental’s earnings.

While the merger can be expected to allow the airlines to offer more connecting flights, purchase newer planes, and add enhancements to current planes that improve passenger experience, there are still some things that may stand in the way of the merger…