Washington — The Justice Department announced Friday it would not challenge American Airlines' proposed acquisition of TWA, a decision that effectively retires one of most storied names in the annals of U.S. aviation.
The department's Antitrust Division said it had decided to let the transaction go forward after investigating the merger and taking into account TWA's bankrupt condition.
Under the proposed deal, American would pay $742 million for most of TWA's assets, including up to 190 planes and the St. Louis hub.
In a separate deal, it also would pay $82 million for a 49 percent stake in DC Air, a minority-owned start-up of United and US Airways that would serve 44 markets out of Washington's Reagan National Airport.
The Justice Department has not yet given an opinion on the DC Air deal.
"We're very pleased," TWA spokeswoman Chris Kelly said. "It's a major step forward."
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