American Airlines merger

What was clearly thought a ‘done deal’ is far from it.  The proposed merger and effective takeover of American Airlines by US Airways looks like dragging on with serious commercial repercussions for both airlines.  Plans for route consolidation and management changes for the winter season have now been scrapped and even summer 2104 looks suspect.  As reported in BTN 19 August the US Department of Justice (DOJ) has filed a lawsuit to block the merger.

The two airlines would like to sort out the impasse as quickly as possible for obvious reasons but the DOJ was suggesting 3 March 2014 before it goes before a Federal judge which the carriers said was “unreasonable,” noting the department already has studied the proposed merger extensively.  On Friday a tentative 25 November was agreed.  In the meantime American Airlines continues to trade under Chapter 11. www.aa.com

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