Legal News

Lawsuit to Block AA and US Airways Merger Will Start Nov 25th
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

The proposed merger of American Airlines and US Airways will face a lawsuit from the federal government. The trial will start Nov. 25th. The U.S. Justice Department had preferred to start the case in March, where they would have gatheredmore evidence for the case, but the airlines pushed back and asked for the case to start sooner.  According to American Lawyer, U.S. District Judge Colleen Kollar-Kotelly commented that a case that started in March is “too far off,” and so the case will start this fall.

The two airlines were planning on joining to create the world’s biggest airline, but were interrupted by the Justice Department and six states as they sued the airlines in efforts to block the deal. The plaintiffs claimed that the reduction of competition in the airline industry would lead to higher prices for consumers. They also said that the airline would be too dominant at Reagan National Airport outside Washington and on “too many routes around the country.”

  
What
Where


The initial hearing was “mainly procedural, aimed at establishing timetables for reviewing documents and other preparations for trial. “At this time the two airlines argued that their merger would “increase competition” but I find that interesting. When in history has reducing the number of competitors in the market increased competition? That seems rather contradictory. Yet American Airlines and US Airways cited that Delta and United Airlines both grew through recent mergers. Attorney Richard Parker, who represents US Airways Group Inc., expects to review other competitors’ documents and financial statements in order to assess that the industry has robust competition. He will attempt to make understood that the merger between the two airlines will not materially affect competition.

The Justice department will counter with their expectation on the price impact as well as other fees and ticket price changes. They expect prices to rise, in spite of wht the airlines claim. The Government wants transparency on how the airlines –after the merger- will lower prices and make consumers save money.  The Justice Department also notes that this period shows record profits at both airlines, thus proving that the airlines don’t need to merge in order to survive.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!






 

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Real Estate Transactional Attorney with 4-12 years of leasing experience

USA-CA-Orange

Irvine office of our client seeks real estate transactional attorney with 4-12 years of experience. ...

Apply Now

Complex Litigation Attorney with 3-5 years of arbitration experience

USA-FL-Miami

Miami office of our client seeks complex litigation attorney with 3-5 years of law firm experience i...

Apply Now

Senior Business & Commercial Litigation Attorney

USA-CA-Irvine

Irvine office is seeking a business and commercial litigation attorney with 5+ years of experience. ...

Apply Now

Labor and Employment Attorney with 3-4 years of litigation experience

USA-CA-Los Angeles

Los Angeles office of our client seeks labor and employment attorney with 3-4 years of litigation ex...

Apply Now

RELEVANT JOBS

Trademark & Business Law Associate | Burlington, Vermont

USA-VT-Burlington

Downs Rachlin Martin PLLC (DRM) is seeking an Associate attorney with 1-3 years of trademark and tra...

Apply now

Patent Assistant (Patent Prosecution)

USA-DC-Washington

We have an immediate opening for a Patent Assistant to join our team!  The Patent Assistant pro...

Apply now

Paralegal / Legal Secretary

USA-CA-Solana Beach

Job Description and Qualifications : Paralegal / Legal Secretary - Duties will include preparat...

Apply now

Legal Secretary / Paralegal

USA-NY-Pearl River

Busy fast paced Rockland County Matrimonial firm seeking full time experienced family law paralegal ...

Apply now

Most Popular

SEARCH IN ARCHIVE

To Top