Reasons Why U.S. Government Wants to Block American-US Airways Merger
Skift Take
Officials from American Airlines and US Airways may have blundered big-time when they publicly stated that their respective airlines could indeed operate independently. This deal looked so bad from an anti-competition perspective that even the attorneys general from Texas and Arizona, where AA and US Air are headquartered, respectively, joined the suit.
Like someone screaming their last-minute objections at a wedding ceremony, the new American Airlines, considered to be a done deal and just a couple of months away from takeoff, just experienced a very serious complication.
In a blockbuster move, the U.S. government finally found some guts, and along with six attorneys general and the District of Columbia, filed a civil suit to prevent the $11 billion U.S. Airways-American Airlines merger.
While officials from both airlines viewed final Department of Justice approval as almost a fait accompli, and were merely weighing how many slots they might have to give up, the DOJ said enough is enough and sued in U.S. District Court in Washington to stop the marriage, arguing it would stifle competition between the two airlines, and lead to higher fares.
“Airline travel is vital to millions of American consumers who fly regularly for either business or pleasure,” said Attorney General Eric Holder. “By challenging this merger, the De
