Tag: American Airlines

USAirways Merger with American Hits Turbulence

The Federal Department of Justice has been joined by the attorneys general from six states (including Pennsylvania) and Washington DC to stop the proposed merger between USAirways and American Airlines.  They have filed suit in Federal court claiming that the merger would create the world’s largest airline resulting in higher fares and less service and competition.  This is an unexpected turn of events.  Since the two companies had announced their merger plans earlier this year, things had been moving along without turbulence as the plan was approved by each company’s shareholders along with American’s creditors as that airline departs bankruptcy. 

 

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