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US: As states join American, US Airways debate, new lawsuit threatens deal

By  |  July 4, 2013
US: As states join American, US Airways debate, new lawsuit threatens deal

Forty consumers filed a federal lawsuit against the proposed merger between American Airlines and US Airways, a deal that would create the world’s largest airline, claiming the buyout would be detrimental to consumers and to competition. The lawsuit, filed in San Francisco, earned rapid response by both airlines, which offered official statements both downplaying the case. According to US Airways, the case is typical of “high profile mergers,” which often receive “baseless allegations” of anticompetitive behavior. Further, US Airways assured that airport spots would not close as an effect of the merger. According to court documents, plaintiffs claim the deal would be anticompetitive as only four airlines – United, Delta, Southwest, and the combined American/US deal – would dominate the market.

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