Federal Government Approves American-US Air Merger

The merger creates the biggest airline in the world

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Susan Walsh / AP

The U.S. Justice Department announced Tuesday it had reached an agreement that will allow the merger of U.S. Airways and American Airlines.

The merger, which will create the largest airline in the world, had been held up over concerns it would give the combined company too much market power and result in inflated ticket prices, particularly in markets like Washington, D.C., where it will control 69% of air traffic.