US Airways Tag

Interesting developments continue in the merger efforts of American Airlines and US Airways: According to the Washington Post, the U.S. Department of Justice and several states have just sued to block the proposed merger of American Airlines and US Airways, arguing that the new $11 billion airline would reduce...

I try to follow the various recent deals within the US airline sector, and amongst the predictable post-close challenges around union negotiations, booking systems integration etc, this note really caught my eye: Diana Moss, VP of the American Antitrust Institute (AAI) recently testified in the US Airways–American Airlines merger review, voicing her concerns about the deal. Alongside the predictable concerns related to market share and the potential to exert anti-competitive behaviour, out came this zinger: “An increasingly important factor in the efficiencies debate is post-merger integration".