AA, US request early merger trial
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American Airlines and US Airways have filed a motion to set a trial date in connection with the move by the US Department of Justice (DOJ) to block their planned merger.
The two carriers have contacted the District Court for the District of Columbia in Washington DC to request a 12 November 2013 trial. Earlier this month, the DOJ filed a lawsuit to block the AA-US merger, saying it could be anti-competitive and unbeneficial to consumers. The chairman, president & CEO of American’s parent company, AMR Corp, disagrees:
“We strongly believe in the significant benefits the merger of American Airlines and US Airways will deliver to consumers, communities and employees,” said Tom Horton, who will also become chairman of the new joint airline. “The people of American Airlines have worked extremely hard over the past two years to lead our company through a remarkable and successful restructuring and turnaround. After all of their contributions, we are ready to move forward with this merger. We look forward to beginning this trial in November so we can complete our journey toward building the new American and deliver on the promise of this merger.”
The DOJ had requested the trail take place 180 days from its filing, pushing it into 2014. But AA and US said that such a delay would be “unprecedented and unreasonable”, especially given the fact that AA’s exit from bankruptcy depends largely on the success of the merger.
“This merger is the foundation of American’s plan to exit bankruptcy and is the cornerstone of American’s and US Airways’ plan to form a more competitive and cost-effective airline,” said Doug Parker, chairman & CEO of US Airways and incoming CEO of the combined company. “We are committed to resolving this litigation and, if necessary, will pursue all legal options in order to achieve this merger.”
AA and US are planning to form the world’s biggest airline group, operating more than 6,700 daily flights and carrying an estimated 190 million passengers per year. But the DOJ claims the merger would be “a vehicle to reduce competition between the airlines and raise fees and fares”.
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