Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Government Lawsuit Seeks to Block American Airlines-US Airways Merger
Author: Joel R. Glucksman
Date: August 23, 2013
Key Contacts
Back
A government lawsuit, filed by the Justice Department and several states, is seeking to halt the proposed American Airlines merger with US Airways. The merger – the final step in AMR’s exit from bankruptcy protection – would create the largest airline in the world.
The government’s antitrust suit was largely unexpected, as the two airlines have been making notable and unimpeded progress toward their merger in recent weeks. However, the suit will halt those plans, as the Justice Department seeks to prove that the merger will hinder competition and hurt consumers by leading to higher fares and fees. Should the merger be pushed through, the government said, it feared the new airline would control more than 80 percent of the U.S. commercial air market.
The lawsuit was filed in the U.S. District Court for the District of Columbia, and Arizona, Florida, Pennsylvania, Tennessee, Texas, and Virginia joined in the litigation. In a conference call to reporters, Bill Baer of the Justice Department said that the suit is critical to protecting consumers from hundreds of millions of dollars in unnecessary and burdensome costs.
“While shareholders might benefit, [and] creditors might benefit from consolidation, the fact of the matter is, consumers will get the shaft,” said Baer. “The right option here is a full-stop injunction.”
US Airways CEO Doug Parker disagreed with the Justice Department’s assertions, especially as the merger has already been approved by the European Union, airline creditors, and airline shareholders.
“We are extremely disappointed in this action and believe the DOJ is wrong in its assessment,” said Parker. “We will fight them.”
A hearing to confirm AMR’s bankruptcy exit plan is expected to move forward on Thursday, and it is unclear how the lawsuit may initially impact the company’s plan to emerge from proceedings.
- Practices: Bankruptcy & Creditors' Rights
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Breach of Contract Explained: Types and Consequences
Breach of contract disputes are the most common type of business litigation. Therefore, nearly all New York and New Jersey businesses will likely have to deal with a contract dispute at least once. Understanding when to file a breach of contract lawsuit and how long you have to sue for breach of contract is essential […]
Author: Brittany P. Tarabour
How to Dissolve a Corporation in New Jersey: A Step-by-Step Guide
Closing your business can be a difficult and challenging task. For corporations, the process includes formal approval of the dissolution, winding up operations, resolving tax liabilities, and filing all required paperwork. Whether you need to understand how to dissolve a corporation in New York or New Jersey, it’s imperative to take all of the proper […]
Author: Christopher D. Warren
Gross Lease vs. Net Lease: Understanding the Key Differences
Commercial leases can take a variety of forms, which is often confusing for both landlords and tenants. Understanding the different types, especially the gross lease structure, is important when selecting the lease that best suits your needs. One key distinction between lease types is how rent is calculated and paid. This article addresses the two […]
Author: Robert L. Baker, Jr.
What to Do If You Are Impacted by a Retailer Bankruptcy Part 2
Over the past year, brick-and-mortar stores have closed their doors at a record pace. Fluctuating consumer preferences, the rise of online shopping platforms, and ongoing economic uncertainty continue to put pressure on the retail industry. When a retailer seeks bankruptcy protection, a myriad of other businesses are often impacted. Whether you are a supplier, customer, […]
Author: Brian D. Spector
The Current Administration's Proposals for the Financial Services and Banking Industries Will Affect Your Business
Since his inauguration two months ago, Donald Trump’s administration and the Congress it controls have indicated important upcoming policy changes. These changes will impact financial services policies and priorities. The changes will particularly affect cryptocurrency, as well as banking rules and regulations. Key Regulatory Changes in Cryptocurrency For example, in the burgeoning cryptocurrency business environment, […]
Author: Dan Brecher
Tips for Commercial Landlords Impacted by Wave of Retailer Bankruptcies Part 1
The retail sector has experienced a wave of bankruptcy filings over the last year. Brick-and-mortar businesses in financial distress include big-name brands like Big Lots, Party City, The Container Store, and Vitamin Shoppe. When large retailers seek bankruptcy protection, they are not the only businesses impacted. Landlords can be particularly hard hit. While commercial landlords […]
Author: Brian D. Spector
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.