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
Scarinci Hollenbeck Expands NYC Real Estate and Litigation Practices ADDING four litigators
NYC Real Estate and Litigation Attorney Ryan O. Miller and Team Join Scarinci Hollenbeck, LLC New York City, NY – August 13, 2025 – Scarinci Hollenbeck, LLC has strengthened its Real Estate and Litigation practices with the addition of four New York City-based attorneys. Ryan Miller, who joins as a partner, is well known for […]
Author: Scarinci Hollenbeck, LLC
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
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.