US Airways/American Merger Trial Is Set for Takeoff

On Aug. 13, the U.S. Department of Justice and six state attorneys general filed a lawsuit to block the proposed merger of American Airlines and US Airways. Pennsylvania was one of the states to join the suit. The proposed $11 billion transaction would combine the fourth- and fifth-largest U.S. carriers, making the new American the largest domestic airline, and, by some measures, the largest airline in the world.

Bill Baer, head of the DOJ’s Antitrust Division, said: “We filed the lawsuit today because we determined that the merger—which would create the world’s largest airline and leave just three legacy carriers remaining in the U.S.—would substantially lessen competition for commercial air travel throughout the United States.” Lawyers for the airlines fired back: “We are litigating this case, period.” According to the airlines, “combined, US Airways and American Airlines will offer more and better travel options for passengers through an improved domestic and international network, something that neither carrier could provide on their own.” The trial is scheduled to begin in federal court Nov. 25 in Washington, D.C., before U.S. District Judge Colleen Kollar-Kotelly of the District of Columbia. The trial is expected to last 10 to 15 days, and the court has said that a ruling will come in January after the parties have submitted post-trial briefings.

Chamber of Commerce, Nutter Urge DOJ to Drop Suit