US airline merger creates largest carrier

The world’s largest air carrier has officially been created with the merger of American Airlines and its smaller rival US Airways.

It will keep American’s name and the full merger process is expected to take up to two years as American emerges from bankruptcy protection.

This follows last month’s resolution of competition objections by the US Department of Justice.

Passenger groups had also tried to block the merger on the grounds that it would drive air travel prices up and service down and make planes more crowded, but the courts wouldn’t play ball.

This should end the wave of consolidations that has helped put US airlines on a more sound financial footing.