Supreme Court Declines to Block American, US Air Merger
The United States Supreme Court late Saturday night gave the green light for American Airlines and US Airways to merge. The combination will form the world’s largest airline.
On Saturday, Justice Ruth Bader Ginsburg denied a stay request filed by a group of passengers and travel agents. On Friday, a federal appeals court rejected the group’s attempt to block the merger, prompting the group to file an appeal to the Supreme Court. U.S. District Judge Loretta Preska rejected the argument by Joseph Alioto, a lawyer representing travel agents and airline passengers, who said that the merger would raise prices, reduce service, and make planes more crowded.
The merger has been scheduled to close on December 9 following the November 27 resolution of the antitrust lawsuit filed by the Department of Justice in August.
In their appeal to the Supreme Court, the plaintiffs, led by Carolyn Fjord, said that the merger would raise prices, reduce service, and make planes more crowded.
“The question of the legality of the proposed merger … following on the whirlwind of mammoth mergers in the airline industry in the last five years, is serious enough to warrant a stay of the orders which permit the consummation of the merger, pending an appeal,” the plaintiffs said in their filing to the highest court in the land.
The two airlines plan to close the merger before the financial markets open on Monday.
(Photo: Accura Media Group)