September 15, 2013 |
A federal lawsuit to stop the proposed merger of American Airlines and US Airways could be good for penny-pinching fliers. The legal challenge filed in August by the U.S. Department of Justice says that the deal to create the world's largest carrier would cut competition and lead to higher fares. Until the lawsuit is settled or won by either side, don't expect the two airlines to raise fares and give federal authorities more reason to fight the merger, said Rick Seaney, chief executive of the fare monitoring site Farecompare.com.
September 12, 2013 |
A bankruptcy judge in New York has endorsed a plan to merge American Airlines and US Airways, pending the outcome of a legal challenge by the U.S. Department of Justice. Judge Sean Lane approved the merger plan Thursday at a hearing in U.S. bankruptcy court. AMR Corp., the parent company of American Airlines, filed for bankruptcy in November 2011. But the merger that would create the nation's largest carrier must still overcome a lawsuit filed last month by the Justice Department, which claims the merger would cut competition and lead to higher fares.
August 30, 2013 |
A U.S. District Court judge set a Nov. 25 date for the start of a trial over the proposed merger that would create the largest airline in the world. AMR Corp., the parent company of American Airlines, was set to merge with US Airways earlier this month when the U.S. Department of Justice filed a lawsuit, saying a merger would hurt competition and lead to higher fares. The Justice Department had requested that a trial for the lawsuit begin March 3, 2014, while lawyers for the airlines requested that the trial begin sooner, on Nov. 12. The decision by District Judge Colleen Kollar-Kotelly is a victory for the airlines, whose lawyers argued that a prolonged delay to the merger could hurt the financial future of the carriers.
August 27, 2013 |
The merger to create the world's largest airline will have to get the green light from a U.S. District Court. The question now is when will the trial start. The U.S. Department of Justice asked a district court judge Tuesday to set a March 3 trial date to hear its challenge of the mega-merger of American Airlines and US Airways. Quiz: What can't you take onboard a jetliner? The Justice Department has filed suit to stop the merger, saying it would result in fewer services, less competition and higher airfares.
August 26, 2013 |
AMR Corp., the parent company of American Airlines, reported a $292-million profit for the month of July, a new monthly record for the company that is trying to exit bankruptcy in the next few months. Excluding $57 million in reorganization fees, the Fort Worth-based carrier reported $349 million in operating profits, according to a monthly filing required by the bankruptcy court. In comparison, AMR reported a $357-million profit for the entire second quarter of 2013, the company said.
August 23, 2013 |
American Airlines and US Airways want to get the show on the road in their fight with the U.S. Justice Department, which last week sued to block an $11 billion merger of the two airlines. On Thursday, the airlines' lawyers filed a motion requesting a trial date be set for Nov. 12 -- about three months sooner than the Justice Department's proposed trial date. "We are eager to show that the DOJ's action would deny millions of customers access to a more competitive airline that will offer customers what they want, delivering significant benefits to consumers, communities and employees," said Doug Parker , US Airways chief executive who would become CEO of the proposed, combined company.
August 21, 2013 |
Rivals ShoeDazzle and JustFab, L.A. fashion websites that sell women's shoes, will merge after months of negotiations. The companies said the merger would create the world's largest fashion subscription e-commerce company, with more than $400 million in annual revenue and 33 million members. Financial details and other terms of the deal, announced Wednesday, were not disclosed. JustFab co-CEOs Adam Goldenberg and Don Ressler will keep their titles at the combined company, while ShoeDazzle CEO Brian Lee will become a member of the board of directors.
August 15, 2013 |
A day after the U.S. Department of Justice sued to block the mega-merger of American Airlines and US Airways, attorneys for the carriers called the legal challenge weak and said they are looking forward to battling the government in court. The Justice Department's lawsuit threw a roadblock in front of a merger that was expected to be completed in the next few weeks. The suit charges that the creation of the world's largest airline would hurt competition and lead to higher fares. "They got this one wrong," said Rich Parker, a lawyer for the airlines and partner at O'Melveny & Myers.
August 15, 2013 |
Veteran actor Ken Howard has won another term as president of SAG-AFTRA, Hollywood's largest entertainment union. Howard easily defeated his challenger, " NYPD Blue" actor Esai Morales, to determine who will lead the performers union over the next two years. Howard received 16,396 votes, with Morales receiving 9,850 votes, SAG-AFTRA said in a statement. PHOTOS: 2012 highest-paid media executives Formed a year ago by the merger of two rival unions, SAG-AFTRA represents more than 165,000 actors, recording artists, broadcasters and other performers.
August 14, 2013 |
The best illustration of the virtues of deregulation may be the U.S. airline industry, which Congress liberated from most nonsafety-related rules in 1978. The cost of flying plummeted as a host of new players entered the business to compete with the major national airlines. But as anyone stuck in coach class will tell you, flying isn't much fun anymore. Airlines cram more people onto planes that offer less legroom. Conveniences that used to be included in the standard ticket price now carry extra fees.