United States Department of Justice

And Then There Were 3 (Or 4, If You Count Southwest). American-US Airways Merger Official

Though pretty much a foregone conclusion at this point, the AMR bankruptcy judge officially signed off on the antitrust settlement between American Airlines/US Airways and the DOJ. I had seen an interesting graphic the Wall Street Journal prepared a few weeks ago but forgot to post it, so today’s “news” seemed like a good excuse.  Here’s the link, it’s just shy of a 2 minute walk down deregulated airline history lane.  Click on Animation: Airline Mergers  

Confirmed: Texas Pulling Out of Lawsuit Against American Airlines-US Airways Merger

Terry Maxon has confirmation Texas is pulling out of the American Airlines-US Airways lawsuit. Terry usually has his finger on the pulse of all things American Airlines, so it doesn’t surprise me he has this prior to the presser coming up in about 40 minutes.  What does this mean for the merger? Well, it’s a positive, though not a huge one.  There are still a half dozen states party to the lawsuit along with DOJ.  The move is likely more about optics at this point than any substantive progress, since […]

American Airlines-US Airways Merger Development To Be Announced Shortly

American Airlines and US Airways are getting ready to make an announcement in relation to the merger.  Based on the bread crumbs I’ve seen, there are only three reasons I can foresee: 1.  They’re calling off the merger. 2.  They settled with DOJ. 3.  They’ve convinced the state of Texas to drop their objections to the merger. Since they just got through approving an extension of their exclusivity period to emphasize they’re committed to going to trial, that would lead me to believe it’s not #1.  And yet, if DOJ […]

American And US Airways Get The Day They Want In Court

It’s been a bit of back and forth between DOJ and American Airlines/US Airways in relation to the lawsuit DOJ filed to block their merger.  The airlines wanted to start in November while the DOJ wanted to start the trial in February (but was willing to compromise for the sake of the judge’s schedule and move to March). The judge ruled today in favor of the airlines and a November start date.  I saw it first on View From the Wing, and then went digging for more info.  Terry Maxon […]

Dissecting The AA/US Response TO DOJ On Trial Scheduling

It’s been an interesting few weeks to follow the DOJ intervention into the merger between American Airlines and US Airways. I’ll admit to being surprised when maybe I shouldn’t have with DOJ weighing in. But, I don’t think I’m in the wrong when I say that DOJ has been a bit sloppy here and there with their prose so far.  I don’t necessarily think their position that a merger is anti-competitive is “wrong”, but I do think they could have positioned their arguments better so far.  And, as a consumer, I […]

American Airlines & US Airways File Motion For Speedy-ish Trial; Poking Belly Of Bear?

American Airlines and US Airways filed a m0tion for a speedy trial today (or what amounts to speedy, I guess for DOJ).  You can read the full motion here.  The government wants 6 months to prepare for trial.  American/US Airways think it’s reasonable to start in 90 days.  Before getting into the document in detail, I ‘ve got to say I’m surprised American and US Airways would be willing to wait 90 days for a trial to commence.  I’m not saying that it’s unworkable but I did think this would […]

American Airlines Bankruptcy Judge Neglects To Rule On AMR Exit Plan

In the latest mini-development in the American Airlines/US Airways merger snafu (brought to us by our friends at the DOJ), the bankruptcy judge neglected to rule on the motion for AMR to leave bankruptcy. I can’t say I’m an expert on bankruptcy law, but there are a bunch of interesting propositions here.  First, from something I read earlier, American is supposed to be past the statutory limit a company can stay in bankruptcy protection. The judge also has the right (I believe) to allow the creditors to submit reorganization plans […]

The First Words From American/US Airways On The DOJ Lawsuit

I meant to post this yesterday when I got the below e-mail from Doug and the folks at “New American Arriving”.  I received a mass e-mail from the good folks at US Airways/American Airlines detailing their thoughts on the DOJ lawsuit filed yesterday.  First, the text of the letter: As US Airways continues to pursue a potential merger, I want to keep you updated as developments occur.     The DOJ has unfortunately just announced that it intends to try and block our proposed merger with American Airlines. I am extremely […]

Breaking Down The Text of the American Airlines/US Airways Merger Complaint

I posted quickly yesterday some initial thoughts on the lawsuit that the US Department of Justice filed to block the American Airlines/US Airways merger.  I spent some more time yesterday and this morning and have a few more things to offer up.  I went through the full text of the complaint last night (just over 50 pages) and carved out some items I think represent DOJ’s main thoughts here as well as some items I disagree with.  Keep in mind I was never strongly in favor of the merger so […]

US Government Files Suit To Block American/US Airways Merger

I certainly can’t say I saw this one coming.  The US Department of Justice has filed suit to block a merger between American Airlines and US Airways.  Quoting attorney general Eric Holder: “By challenging this merger, the Department of Justice is saying that the American people deserve better,” said Attorney General Eric Holder in a statement. “This transaction would result in consumers paying the price—in higher airfares, higher fees and fewer choices.” That might be what the DOJ is saying, but they’re wrong. There’s almost no competition on direct routes between the […]