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AA-US Airways seek rapid court date to battle DOJ merger challenge

Posting in Government

American Airlines and US Airways plan to pursue a quick trial date to take on the U.S. Justice Department's challenge to their merger, which would create the world's largest carrier.

The two airlines said that they are eager to take on the government agency's challenge, which was filed last week by the Justice Department. US Airways Chief Executive Doug Parker said in a statement:

"We are eager to show that the (Justice Department) action would deny millions of customers access to a more competitive airline that will offer customers what they want, delivering significant benefits to consumers, communities and employees."

The DOJ says that the merger would result in reduced competition and eventually lead to higher fares. While under review by Congress, the U.S. Accountability Office completed a study which says merging AA and US Airways will impact competition on over 1,600 routes that are traveled by 53 million passengers a year.

The government agency has also challenged American Airlines CEO Tom Horton's severance package, which will be roughly $19.9 million.

U.S. Airways and American Airlines parent company AMR announced the merger in February. If the merger is to be successful, the DOJ must lose its case, and the judge overseeing AA's bankruptcy proceedings must approve. In addition, U.S. Airways shareholders must agree.

Via: Skift | Reuters

Image credit: American Airlines

— By on August 22, 2013, 5:54 PM PST

Charlie Osborne

Contributing Editor

Charlie Osborne is a freelance journalist and photographer based in London. In addition to SmartPlanet, she also writes for business technology website ZDNet and consumer technology site CNET. She holds a degree in medical anthropology from the University of Kent. Follow her on Twitter. Disclosure