American, US Airways Aim to Settle Merger Lawsuit

Two people familiar with the discussions say American Airlines and US Airways will propose giving up some takeoff and landing rights at Washington’s Reagan National Airport in hopes of settling a government lawsuit blocking their merger.

The offer could be rejected, and the airlines are still planning on the case going to trial Nov. 25, one of the people said Wednesday. Both spoke on condition of anonymity because the talks are private.

The U.S. Justice Department and six states sued in August to block the merger, which would create the world’s biggest airline. They say it would restrict competition and raise prices, and that combining the two airlines would make them too strong at Reagan National.

The airlines’ proposal was reported Wednesday by The Wall Street Journal on its website.