Texas attorney general Greg Abbott announced Tuesday that he is dropping the state's antitrust lawsuit to stop the merger between American Airlines and US Airways.
When the U.S. Department of Justice filed its antitrust suit against the merger in August, Abbott was the lead state attorney general in the suit which said the deal is anti-competitive, would cut service at some airports and would hurt consumers with higher ticket prices and fees.
Abbott, who is currently running for governor, said the state reached a settlement agreement with the carrier, receiving assurances that the newly combined carrier will continue to fly to 22 airports and keep its headquarters in Fort Worth.
He said it was critical to receive assurances from the carriers to protect the nearly 25,000 employees that work in Texas. He added that his primary goal was to maintain service to rural airports in Texas, particularly those close to military bases, such as Killeen-Fort Hood and Abilene.
Texas, Arizona, Tennessee, Virginia, Florida, Pennsylvania, Michigan and the District of Columbia were all part of the suit that is scheduled to go to trial on November 25 in a federal court in Washington D.C.
The announcement of Texas' withdrawal from the suit was made Tuesday afternoon at American's Admirals Club in Terminal D.