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, Corporate Transactions & Business, Bankruptcy Litigation
- 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
New York NDA Requirements for Businesses
Non-disclosure agreements (NDAs) remain a critical tool for protecting sensitive business information. However, New York NDA requirements have evolved, and businesses must ensure these agreements are carefully drafted to remain enforceable. In a competitive market like New York City, NDAs are commonly used to protect proprietary information, client relationships, and strategic plans. At the same […]
Author: Dan Brecher
New Jersey Will Contest Grounds Explained
How Courts Evaluate Testamentary Capacity and Undue Influence Will contests in New Jersey are difficult to win, given the strong presumption that a properly executed will reflects the testator’s intent. However, challenges based on lack of testamentary capacity and undue influence remain common, particularly where there are concerns about mental capacity or the involvement of […]
Author: Marc J. Comer
Legal Issues Before Bringing on Investors
Bringing on outside investors can provide the capital and strategic support a business needs to grow. However, raising capital also introduces important legal, financial, and operational considerations. Before bringing on investors, businesses should address key legal issues to reduce risk, streamline investor due diligence, and position the company for long-term success. Early preparation signals that […]
Author: Dan Brecher
SECURE 2.0 RMD Planning Strategies
How the Updated Law Shapes Retirement and Estate Planning The SECURE 2.0 Act of 2022 materially reshapes the required minimum distribution (RMD) landscape, extending tax deferral opportunities while accelerating distribution requirements for many beneficiaries. For high-net-worth individuals and families, these changes are not merely technical. They require a reassessment of retirement income strategies, beneficiary planning, […]
Author: Marc J. Comer
Buying Commercial Property in New Jersey: Legal Guide for Small Businesses
Small businesses considering buying commercial property in New Jersey must evaluate a range of legal, financial, and operational factors. While ownership can offer long-term value and control, it also introduces significant risks if not properly structured. This guide outlines key considerations to help New Jersey business owners make informed decisions, minimize legal exposure, and successfully […]
Author: Robert L. Baker, Jr.
The SEC’s Latest Guidance on Applying Federal Securities Laws to Tokenized Securities
On January 28, 2026, staff of the U.S. Securities and Exchange Commission’s Divisions of Corporation Finance, Investment Management, and Trading and Markets issued a joint statement clarifying how existing federal securities laws apply to tokenized securities. The SEC’s “Statement on Tokenized Securities” does not establish new law, but it does provide greater clarity on the […]
Author: Dan Brecher
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.