AA-US Air Ruling May Not Come Until January, Texas AG Drops Opposition to Merger

By Paul Riegler on 2 October 2013
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An American Airlines 777-300ER in Dallas

An American Airlines 777-300ER in Dallas

The judge overseeing the Department of Justice antitrust case that seeks to block the merger of American Airlines and US Airways said Tuesday that the trial will proceed as planned on November 25.  The ruling by U.S. District Judge Colleen Kollar-Kotelly followed a request for a stay by the DOJ, citing the government shutdown.

While the judge wrote that the stay would be “inappropriate for a number of reasons” including the pending merger between the two airlines and American’s pending exit from bankruptcy proceedings, she also indicated in the course of the hearing that she might not rule on the case until early January, 2014.

American and US Airways had hoped that the case would be concluded before the end of 2013.

In a related event, the state of Texas is dropping its opposition to the merger.  State Attorney General Greg Abbott, who is also the Republican candidate for governor, joined the Department of Justice’s August lawsuit that seeks to block the combination.  At a news conference in an American Airlines Admirals Club at Dallas/Fort Worth International Airport Tuesday, Abbott said he had reached an agreement with the two airlines concerning their service to 22 airports in the state.  The parties reiterated the fact that the combined company would keep its headquarters in the Dallas/Fort Worth area and that DFW itself would remain as a major hub for the airline.

(Photo: Accura Media Group)

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