U.S. DOT APPROVES AMERICAN &lt;AMR>-ACI &lt;ACF> PACT

  The U.S. Department of
  Transportation (DOT) said it gave final clearance to the
  proposed 225 mln dlr acquisition of AirCal Inc by American
  Airlines Inc.
      "The acquisition is not likely to substantially lessen
  competition or to be inconsistent with the public interest," the
  DOT said in a statement.
      AirCal is a unit of ACI Holdings Inc while American is a
  unit of AMR Corp.
      The DOT had given tentative approval to the merger plan
  Feb. 20.
      American is the third largest U.S. airline in terms of
  revenue passenger miles while AirCal--a relatively small
  carrier that primarily serves West Coast cities--is the
  nation's 17th largest passenger carrier. Their merger would not
  alter American's third-place ranking, according to data
  compiled by Aviation Daily, a leading industry trade magazine.
      The combination would incrase American's share of the U.S.
  market to 15.4 pct from its current 14.7 pct, the DOT said.
      The DOT said the merger was unlikely to substantially
  reduce competition on the four routes on which both carriers
  provide either nonstop or single-plane service.
      At 13 of the 14 terminals served by both carriers, the DOT
  said it found no evidence that other carriers could not
  increase or begin service that competed with a merged
  American-AirCal.
      Concerning the 14th, "While entry may not be possible at the
  Orange County Airport in the near future, DOT found that the
  service provided at other airports in the Los Angeles area,
  especially at the Los Angeles International Airport, will
  provide effective competition for Orange County travelers in
  long-haul markets," the DOT said.
      The merger would give American control of 37 pct of the
  authorized takeoff and landing slots at the Orange County
  terminal, where environmental concerns and a small terminal
  building limit future opportunities for expansion.
      The DOT said the Air Line Pilots Association filed comments
  opposing the merger but "raised no new facts or arguments."
      Under the merger terms, announced Nov. 17, American will
  pay 15 dlrs a share for the outstanding stock of ACI Holdings.
  

