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Friday, October 4, 2013

Texas Drops Out of Lawsuit Against American Airlines Merger

Woodrow Bellamy III

Texas Attorney General Greg Abbott is dropping out of his participation as a co-plaintiff in the U.S. Department of Justice pending lawsuit to block the proposed merger between American Airlines and US Airways. 
DOJ originally filed its lawsuit to block the merger in August, and was joined by state attorneys general from Texas, Arizona, Florida, Pennsylvania Tennessee and Virginia. The department believes the newly merged carrier would reduce competition and significantly raise airfare for airline passengers. 
Both carriers have now announced a new agreement with the Texas attorney general that would allow the newly merged American Airlines to maintain Dallas/Fort Worth International  as its large hub airport, along with maintaining headquarters in the region as well.
"I'm pleased we were able to find common ground and gain the carefully considered support of the Attorney General in our home state," said Tom Horton, chairman, president and CEO of AMR. "This is an important step forward for American Airlines, for Texas, and for our customers and people of both American and US Airways."

A trial to hear DOJ's challenge to the merger is scheduled for Nov. 25 at a district court in Washington D.C.


Related: American Airlines, US Airways Extend Merger Deadline 

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