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August 30, 2013 | By Hugo Martin
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 | By Hugo Martin
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 | By Hugo Martín
The parent company of American Airlines reported a $292-million profit for July, a monthly record for the company that is trying to exit bankruptcy in the next few months. Excluding $57 million in reorganization fees, AMR Corp. reported $349 million in operating profit, according to a monthly filing required by the U.S. Bankruptcy Court. July's profit is the highest for any month in the company's history. In comparison, AMR reported a $357-million profit for the entire second quarter of 2013, the company said.
August 23, 2013 | By Ricardo Lopez
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 15, 2013 | Hugo Martin
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 14, 2013 | By The Times editorial board
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.
August 13, 2013 | By Hugo Martín and Ricardo Lopez
After years of airline mergers that have dramatically reduced choices for travelers, the U.S. Justice Department has sued to halt what would be the largest airline marriage in U.S. history. The Justice Department joined six states and the District of Columbia in a lawsuit Tuesday to block the proposed merger of US Airways and American Airlines. If successful, the government could slow a consolidation craze that has dramatically cut the number of major U.S. carriers. A US Airways-American Airlines merger would create the world's largest airline, with more than 100,000 workers and 187 million passengers a year.
July 12, 2013 | By Hugo Martin
A merger between US Airways and American Airlines, creating the nation's largest air carrier, has taken another step forward with the approval of a majority of US Airways shareholders. About 99% of US Airways Group shareholders who voted Friday supported the merger with American's parent company, AMR Corp. The vote was not surprising as it was US Airways that first proposed the merger after AMR Corp. filed for bankruptcy in 2011. "This approval is a major milestone on our path to completing the merger, and we continue to make excellent progress overall thanks to the focused efforts of the dedicated representatives from both companies," said Doug Parker, chairman and chief executive of US Airways and incoming chief executive of the combined company.
June 30, 2013
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June 20, 2013 | By Hugo Martin
The proposed merger of American Airlines and US Airways would cut competition on more routes than previously thought, impacting more than 53 million fliers, according to a new federal study. Proponents of the merger have said in the past that the two airlines overlap on only 12 non-stop routes. But in the first detailed study of the merger's impacts, the U.S. Government Accountability Office said competition would be cut on 1,665 other routes with at least one stop. By comparison, the GAO study said the merger of United with Continental in 2010 eliminated a key competitor in 1,135 routes.
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