[Travelandtourism] update AA-US Airways Merger

DJ Reese atlanticstar1 at gmail.com
Fri Aug 30 15:47:26 UTC 2013


Cheryl:

Looks like serious negotiations are underway between AA/US and the DOJ on 
resolving there objections to the merger.  If AA/US comes up with a plan to 
reduce slots at Washington's National Airport then this merger does have a 
chance to happen.  Guess we will see what the DOJ is willing to give back to 
AA/US in return.

Reese

----- Original Message ----- AA-US AIRWAYS MERGER: DOJ OPEN TO SETTLING ITS 
LAWSUITby Michèle McDonaldAugust 30, 2013

The Department of Justice (DOJ) indicated for the first time that it might 
be open to settling its antitrust lawsuit against the proposed American 
Airlines and US Airways merger.
In a joint statement to the court by the DOJ and the airlines, DOJ said the 
“plaintiffs are open to a settlement that addresses the competitive harms 
posed by the merger but have not yet received any such proposal from the 
defendants.”
It was a narrow sliver of light – possibly just a show of good faith by the 
DOJ – but it opened the door. The lawsuit and earlier statements by DOJ 
officials seemed to leave little room for consideration of a settlement and 
some observers said the department had painted itself into a corner.
Wiggle roomThe most likely area for wiggle room is the issue of slots at 
Washington National Airport, where the combined carrier would hold 69% of 
the slots and would have a monopoly on 63% of the nonstop routes served out 
of the airport, according to the lawsuit.





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