The Justice Department has said that it has reached a preliminary agreement to settle its legal battle with American Airlines and US Airways over their proposed merger.

According to a document filed on Tuesday showed that the agreement might lead to settlement between the authorities and the airlines. The US Justice Department has said that it believes that the proposed merger between American Airlines and US Airways would result in higher fares and fees, which have been increasing in the country.

The Justice Department a lawsuit to block the merger of American Airlines and US Airways as regulators and industry officials continued to discuss the best way out for the customers. Analysts have said that American will not be able to compete with giants, United Airlines and Delta Air Lines, as it tries to recover from bankruptcy protection.

Under the agreement, the two airlines would sell 104 take-off and landing slots at Ronald Reagan National Airport in Washington, 34 slots at La Guardia Airport in New York, and various assets at five other airports, including Logan International Airport in Boston, O’Hare in Chicago, and Los Angeles International Airport.