The Justice Department filed a lawsuit Monday to block the $11 billion merger of American Airlines and US Airways, a deal that would have created the world’s largest airline. It was a surprise move from an office that has allowed three major airline combinations in the past five years, and could mark a watershed moment in how the DOJ handles the airline industry.
The DOJ complaint argues that the merger is not key to the survival of either company and that the loss of a competitor in an already small field would “result in passengers paying higher airfares and receiving less service.”
For their part, American and US Airways said they plan to “mount a vigorous defense and pursue all legal options” to complete the “procompetitive deal.” A Line In The Sand This isn’t totally new territory for the DOJ. It blocked United’s proposed acquisition of US Airways in July 2001, […]
Latest posts by Tom George (see all)
- New Digital Trends In Today’s Smartphone-Obsessed World - September 6, 2016
- 5 Things a Recruiter Looks for in a Resume - August 30, 2016
- Obtaining Legal Immunity for Pet Cohabitation - August 30, 2016