US Airways’ Washington Airport Prize Hobbles AMR Merger

As U.S. regulators spent the better part of six months preparing to sue to stop the American Airlines-US Airways Group Inc. merger, the carriers devised a plan to allay some antitrust concerns: an offer to cede flight slots at Washington’s Reagan National Airport.

While the proposal fell flat, three people with knowledge of the matter said, the talks show the stakes at an airport where a merged carrier would control 69 percent of the flights. The airlines’ overtures weren’t enough, said the people, who asked not to be identified because the discussions were private, and the Justice Department sued on Aug. 13 to block the deal.