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Friday, August 23, 2013

American Airlines, US Airways to Battle DOJ Lawsuit in November

Woodrow Bellamy III

American Airlines and US Airways are seeking a Nov. 12 trial date to dispute the recent lawsuit filed by the Department of Justice (DOJ) against its proposed $11 billion merger. 
"This merger is the foundation of American's plan to exit bankruptcy and is the cornerstone of American's and US Airways' plan to form a more competitive and cost-effective airline to take on the country's largest air carriers – Delta, United Airlines, and Southwest – and a number of fast-growing low-cost carriers, including Virgin America, JetBlue, Spirit and Allegiant," said Doug Parker, CEO of US Airways. "We are committed to resolving this litigation and, if necessary, will pursue all legal options in order to achieve this merger."
In its lawsuit, the DOJ claims the proposed merger would eliminate competition on more than 1,000 routes, and would hike airfares. Both airlines disputed those claims. 
The European Commission (EC) has already approved the merger, after both airlines agreed to sell a pair of takeoff and landing rights to a London-Philadelphia route. EC said the merger would've created a monopoly on that route at Philadelphia International and London Heathrow Airports. 
If the airlines win their trial and the merger is able to go through, it would create the world's largest airline. 


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