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US: DOJ outlines reasoning for March AA, US Airways merger trial

By  |  August 28, 2013

While American Airlines and US Airways are hoping for a sooner trial in the lawsuit filed against the companies by the US Department of Justice over their proposed merger, the DOJ has issued a memo outlining its reasoning for wanting to delay the case until March.

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    In the release, the DOJ describes the merger as “a substantial threat to competition” in various local US markets. Due to the size of the case, the DOJ said, both sides will need ample time to develop their cases.

    The DOJ accuses the airlines of rushing the case in the memo and lists the reasons for a March trial, which include: (1)”American’s Ongoing Bankruptcy Proceedings Do Not Justify Trying this Case on an Incomplete Record. (2)The Government’s Pre-Filing Investigation Is No Substitute for Full Discovery in Both the Allegations in the Complaint and The Airlines’ Defenses. (3) Six Months to a Full Trial on the Merits Is In Keeping with Timetables in Comparable Merger Cases and (4) The Public Interest Strongly Favors Plaintiffs’ Proposed Schedule.

     

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