WSJ: U.S. Challenges Merger of AMR, US Airways
The Wall Street Journal reported that the Justice Department is challenging the $11 billion merger of American Airlines and parent AMR with US Airways Group. The DOJ said the deal would hurt airline competition due to the recent waves of consolidation.
The Journal noted that Attorney General Eric Holder in a statement said, “This transaction would result in consumers paying the price—in higher airfares, higher fees and fewer choices.”
According to the article, the government’s suit says the majority of domestic airline routes “are already highly concentrated.” The merger, the Journal said, would result in a domestic air transit market dominated by American, Delta, United and Southwest Airlines.
To read the entire WSJ story, click here.
Previously on abfjournal: US Air Shareholders Approve of American Merger, July 15, 2013